Ex-India hot rolled coil (HRC) prices have been reported across a wide range amid the lack of any market direction, with participants from China absent due to the holiday and with Indian mills attempting to submit higher offers, but trade activity has remained silent and buyers have preferred to await more clarity in the market.
Although sources still claim that ex-India HRC prices have largely been kept stable below the $500/mt FOB mark in the range of $485-495/mt FOB, at least two sellers are heard to have submitted slightly higher offers at around $505-508/mt FOB to the Middle East, though no deals at these prices have been confirmed in the market. Thus, the reference price for ex-India SAE1006 HRC has moved to $485-508/mt FOB, against $478-495/mt FOB last week.
The sources said that outlooks and sentiments across various destinations have showed wide variations. For example, in Asian markets buyers have preferred to remain on the sidelines owing to the absence of players from China. At the same time, buyers from the Middle East, who in recent weeks were keeping ex-India trade alive, are seen to be taking a pause, expecting a new price trend.
In Europe, the sources said that mood and prices have been slightly better, with Indian mills quoting a higher price, but this has yet to be translated into increased interest in imports and offers for ex-India HRC did not elicit any response. According to sources, indicative offers for ex-India HRC in Europe have been assessed at $590-595/mt CFR, or around $535/mt FOB.
“Some mills are quoting slightly higher offers, attempting to take advantage of the lack of ex-China presence. But there are no takers in most destinations as buyers are still cautious, unsure of short-term trends post-holiday in China,” a source at Tata Steel Limited told SteelOrbis.
“We expect trade activity to bounce back in the Middle East and to some extent in Europe. But it will remain a buyer’s market and sellers will have low pricing power. Deals will be possible for only small volumes and at lower price levels,” he added.
