Stalemate conditions have prevailed as regards India’s hot rolled coil (HRC) activities during the past week, with sellers declining to cut prices to push sales, while buyers in key Asian markets have remained cautious due to weak demand conditions and have been unwilling to conclude deals unless sellers cut prices. As a result, deals for ex-India HRC have mainly been heard to the Middle East, while exporters are waiting for the resumption of trading to the EU, SteelOrbis has learned.
Ex-India HRC prices have remained almost stable compared to last week at $970-995/mt FOB, versus $970-990/mt FOB. Buyers, mainly in Asia, have been seeking additional discounts of $15-20/mt minimum to conclude deals, but with domestic realizations improving steadily, sellers have been in no mood to cut prices and force overseas shipments.
Meanwhile, they have been focused on sales to the Middle East, where the tradable level has been better, to keep inventories low. At least two officials with private steel mills said that bids below the $1,000/mt FOB mark are not expected to be acceptable in view of domestic sales realizations improving gradually and expected to touch the $1,000/mt mark with the next round of base price increases.
“With demand in the traditional Asian market getting depressed, any turnaround in export realizations is expected from the EU market. Indian exporters are well placed in terms of inventories and local sales to wait for buying from the EU to gain momentum before concluding trades overseas,” one official said.
In total, 75,000 mt of ex-India SAE1006 HRC have been traded to the GCC region at $1,038-1,060/mt CFR, with most volumes sold to the UAE at $1,038-1,050/mt CFR, translating to about $988-995/mt FOB.
The only deal heard in the Asian market during the past week was a small volume by an eastern Indian steel mill with a trading firm at a price of around $960-970/mt FOB.
