Ex-India hot rolled coil (HRC) sellers have remained focused on sales to Europe just before the market closes down for the holidays, achieving modest success in pushing through deals in the region, while trade in other destinations remains in a lull due to more competitive offers from Chinese suppliers.
Ex-Indian HRC prices have generally been estimated in the range of $620-660/mt FOB as compared to $600-660/mt FOB last week, with the lower end of the range corresponding to indicative offers in Asia and the Middle East. According to sources, given the significant increase in Chinese offers over the past week, ex-India HRC prices have been estimated at above $600/mt FOB this week as well. “Several ex-India bookings were reported in the Middle East in the beginning of December at $600/mt FOB, but now new offers are at least $10-20/mt higher,” a market insider told SteelOrbis.
In the meantime, Indian suppliers have continued to quote higher in the range of $650-660/mt FOB in Europe, or at around $700-710/mt CFR, but while in the previous week they were somewhat successful in concluding deals, this week new trades have continued to remain low in terms of tonnages. According to sources, a western India-based integrated mill has reported a trade for delivery to Antwerp at $705/mt CFR, while an eastern India-based mill has concluded a trade for delivery to Hamburg at $710/mt CFR. Besides, another integrated mill is heard to have firmed up a trade for around 5,000 mt at $708/mt CFR with a buyer in Belgium, the sources said.
Meanwhile, ex-India HRC offers to Turkey have been reported at around $660/mt CFR this week, though this price level is considered as too high for Turkish buyers given the more competitive ex-China HRC SAE1006 HRC offers at around $620-630/mt CFR.
“The higher activity will ease very soon as Europe goes into the year-end holidays. But local mills are very optimistic for the New Year. The EU has become very important for India as Asian destinations remain in the doldrums for local exporters. Vietnam, one of the most import markets, has not seen any deal from India since September. So, despite optimism over Europe, aggregate export growth from India will remain in the negative zone,” an Indian source told SteelOrbis.