Ex-India HRC export prices have shown a firmer trend over the past week, supported by stronger domestic demand in India and limited seller interest in lower-priced bids across key overseas markets. Offers to the Middle East have edged up week on week, while activity in Europe has been largely concentrated in large-volume contractual business rather than the spot market. At the same time, Indian suppliers have increasingly prioritized higher-margin value-added products and contract sales, reflecting improving pricing discipline and tighter export availability.
More specifically, ex-India offers in the Middle East have been reported in the range of $495-500/mt FOB, up by $10/mt on the lower end of the range week on week, though the sellers have continued not responding to lower bids from customers as most mills are focused on robust domestic sales volumes and better margins. According to sources, offers for ex-India HRC in the UAE have been voiced at $520-525/mt CFR, versus $510-525/mt CFR last week.
At the same time, ex-India HRC offers in Europe have remained rare, with indicative offers for ex-India HRC in Europe reported at $610-625/mt CFR, compared to $600/mt CFR and above last week, which translates to around $555-570/mt FOB, up by $5-20/mt week on week. According to sources, no fresh deals have been reported in the spot market. However, one of the leading European producers is reported to have concluded several large contracts for around 100,000-150,000 mt of HRC with its affiliate in India. “It could simply be a matter of necessity, but also buying from India may be driven by the need to fulfil the Indian safeguard quota, meaning other importers will have to pay duty. Sourcing large volumes from one competitive origin leaves less room for other importers in the market,” a market insider told SteelOrbis.
Furthermore, this week no offers for ex-India HRC have been voiced in Vietnam due to the holiday in the country.
At the same time, sources said that a Maharashtra-based conversion mill sold two lots of 5,000 mt and 8,000 mt of HRP&G (hot rolled pickled and galvanized) coils at prices in the range of $750–830/mt FOB, for delivery to the Gulf-based facility of a multinational automotive component manufacturer. Besides, sources said that a Gujarat-based conversion mill producing value-added coil is reported to have concluded a sale of 5,000 mt of HRPO (hot rolled pickled and oiled) coils for delivery to the UAE at prices in the range of $650–680/mt FOB.
According to an affiliate of Tata Steel Limited’s downstream products division, medium-scale scrap conversion mills producing value-added flat products are increasingly focusing on niche markets, as these offer significantly higher margins compared to traditional commodity steel products, which also face challenging competition in key overseas destinations. He noted that these medium-sized producers of value-added steel are better positioned to cater to high-value niche segments, as they can provide more efficient customization in terms of buyer specifications and offer shorter delivery timelines, even for relatively small-volume deals, compared to commodity-grade steel products.
“Local demand and tight supplies have kept most large mills busy pushing domestic sales and there are very limited exportable volumes available. Also, this offers a window to sellers to avoid pricing challenges overseas. Producers are not willing to sacrifice margins to export at a time when the domestic market remain bullish,” an official at Jindal Steel Limited told SteelOrbis.
“As for export of high-value products, this is still an emerging export market and that too for small volumes. There are only a few such mills active on this front,” he added.