Ex-India hot rolled coil (HRC) prices seem to have reached the bottom and mills have started to withdraw offers or have already voiced higher levels, seeing an improvement in the mood after the rebound which started in China and competition starting to ease a little, SteelOrbis has learned from trade and industry circles.
Ex-India SAE1006 2mm HRC prices are quoted in the range of $580-600/mt FOB, compared to $550-600/mt FOB late last week. The tradable level for all major destinations is still below the $600/mt FOB mark, but, while last week there was one deal done at as low as $550/mt FOB, this week all mills’ targets are hardly below $600/mt FOB.
Indian mills have mainly withdrawn offers from the UAE this week, preparing for an increase with the last official levels being at $625-630/mt CFR or $590/mt FOB. The last deal to the Middle East was done at $565/mt FOB, while now it is reported that mills are considering coming back with $600/mt FOB at least.
In Asia, last week, a deal for 30,000 mt of ex-India HRC was done at slightly below $570/mt CFR, translating to $550/mt FOB. But with Chinese suppliers already voicing offers for SAE1006 HRC to Vietnam at $585-590/mt CFR, new levels from India are definitely expected to be above the $600/mt CFR mark.
Last week, offers at $600/mt FOB from India were reported only to Europe, which is considered the highest-paying destination, but this week Indian suppliers have been thinking to offer this level to other markets like the Middle East, trying to “test the water”.
“Prices had been under pressure from weak demand across Asia and the Middle East. Indian mills had dropped prices as buyers had multiple choices. But now the mood has improved. The most important issue is that buyers are ready for this, as now there are very tentative signs of improvement,” an Indian mill said.