Undeterred by deals not working out over the past week, ex-India hot rolled coil (HRC) sellers in Europe have continued to push up offer levels expecting the upbeat mood to translate to higher workable prices soon, once European mills complete hiking local prices in the region triggering improved import interest.
More specifically, while ex-India offers were priced in the range of $590-650/mt FOB a week ago, this week mills have definitively pulled back all offers below the $600/mt FOB mark and will go in for incremental increases, expecting to deals to fall in place ultimately in the coming months, the sources said. Thus, ex-India HRC offers have settled at $600-660/mt FOB, up by $10/mt week on week, with the higher end of the range corresponding to increased offers in Europe.
According to sources, at least two Indian mills are heard to have submitted offers in the range of $700-720/mt CFR Antwerp, which translates to $650-670/mt FOB, and, even though no deals have been confirmed so far, sellers remain optimistic and have refrained from adjusting offers to push through immediate sales.
“We have not seen any ex-India HRC sales in Vietnam since September. The Asian market has long dried up. Middle Eastern buyers have also not been sourcing from Indian mills. But there is much higher optimism in Europe where local prices are improving and it’s only a matter of time before import interests become sharper,” an official at Tata Steel Limited told SteelOrbis.
“Barring some negatives from speculative futures, we see global prices gaining strength, although slowly. Indian sellers are positioning themselves for the next upturn rather than forcing immediate sales,” he added.
