Ex-India hot rolled coil (HRC) prices have showed a mixed trend with the price range widening as sellers have kept adopting a dual pricing strategy to cope with competition with Chinese sellers in Asia and the Middle East, while maintaining higher price levels in Europe. At the same time, trade activity has been livelier in the Middle East and has showed some revival in Southeast Asia, in Vietnam in particular, while buyers in Europe have been refraining from new purchases due to the quota issue.
More specifically, this week ex-India HRC offers have settled in a wide range of $585-670/mt FOB, versus $605-650/mt FOB last week, with the lower end of the range corresponding to deal prices in Vietnam. In particular, according to sources, an Indian mill has reportedly sold around 30,000 mt of SAE1006 HRC at $605/mt CFR Vietnam for February shipment. Talk about another ex-India deal for 20,000 mt at $595/mt CFR Vietnam has also been circulating in the market, but this information has not been confirmed by the time of publication.
Meanwhile, more deals have been reported for ex-India HRC in the Middle East, with a trade for 8,000 mt for delivery to the UAE at $635-640/mt CFR for February shipment, while another deal for around 20,000 mt has been signed at $640/mt CFR UAE for February shipment as well, which translates to around $610/mt FOB. Offers for ex-India HRC have been estimated at $640-645/mt CFR, the same as last week.
At the same time, offers submitted by India sellers in Europe have been heard at $650/mt FOB and higher, with no response as European buyers have remained cautious due to the exhausted tariff quotas. “We heard some ex-India HRC offers already at $730/mt CFR, which translates to around $675-680/mt FOB, and, although the price is competitive as compared to local offers, few buyers are ready to take the risk given the quota issue,” a European trader told SteelOrbis.
“With sentiments in the local market shifting very fast to a negative zone, we expect local mills to become more aggressive in overseas sales to liquidate export allocations for the last quarter,” an official at a private mill speaking to SteelOrbis commented, “There may not be opportunities to increase prices. But indications from the MENA region and Southeast Asia are such that export sales in terms of volumes may be improved.”
