Ex-India hot rolled coil (HRC) prices have remained largely stable over the past week amid muted trading, with deals failing to materialize due to very low bids. Mounting pessimism in key export destinations and mills’ reluctance to aggressively pursue overseas sales have kept activity subdued.
Sources said that local mills are heard to have submitted offers in the range of $505-515/mt FOB in the Middle East, up by $5/mt on the higher end of the range week on week. In particular, according to sources, most offers for ex-India SAE1006 HRC in the Gulf region have been voiced at $535-540/mt CFR, the same as last week. However, a number of sources have reported offers at slightly higher levels of around $545-550/mt CFR.
“It is almost impossible for Indian sellers to attract buyers in the region, as other suppliers - especially those from China - are offering HRC at around $515/mt CFR, or even lower,” a UAE-based trader told SteelOrbis.
Meanwhile, offer prices from Indian suppliers to Europe have been voiced in the range of $545-550/mt FOB, unchanged from the previous week, with EU buyers reporting offers at $600-605/mt CFR levels. According to sources, European buyers have not responded yet, as most have only returned a few days ago, while some still remain absent.
“There are a lot of disruption of trade flows across regions, fuelling a fresh wave of pessimism. Buyers are postponing new import bookings amid weak demand expectations and anticipations of prices entering another down-cycle,” an affiliate of Tata Steel Limited said.
“At the same time, we do not foresee Indian mills will be aggressive in forcing export sales at a time when local demand is decent and there is no economic viability in sacrificing margins by selling at a discount overseas,” he said.
