Ex-India hot rolled coil (HRC) prices have been kept stable in line with slow trade. According to sources, a sliver of optimism has been emerging from the modest buying interest from the Middle East. However, deals have remained occasional as sellers keep refusing to make concessions and lower their prices.
More specifically, offers for ex-India HRC SAE1006 HRC have been quoted in the range of $485-510/mt FOB, the same as last week. Market insiders reported several deals during the past week signed to the Middle East above the $500/mt FOB mark, prompting most large mills to withdraw offers at discounts that were submitted earlier in the month. They said that an eastern India-based integrated mill reported a trade for 25,000 mt for delivery to Qatar at a price of $500-510/mt FOB, while another large mill concluded a sale of 20,000 mt for delivery to the UAE at $500/mt FOB.
“This week, UAE buyers are looking for materials at around $510/mt CFR, or $475/mt FOB, which is extremely low for Indian mills, and even $485-490/mt FOB levels are considered too low by most mills,” an Indian trader told SteelOrbis.
At the same time, it was pointed out that trade in the EU has remained silent even as local mills are attempting to increase prices, but distributors have been unwilling to look at imports as a decision on dumping investigations is expected shortly. Indicative offers for ex-India HRC in Europe have remained at €560/mt CFR, the same as last week.
“The mood among exporting mills is better than earlier in the month. But it is a challenge to make any forecast considering the multiple variables at play in global trade. Firstly, ongoing investigations into imports into the EU and the safeguard duty expected will have a long-term impact on sales in the region. Secondly, tariff regimes are expected to change across geographies in response to tariff changes proposed by the US Administration,” an official at a private mill told SteelOrbis.
“In our assessment, the better mood will be from the better number of trades, but not so much from better prices,” he added.
