Indian hot rolled coil (HRC) offers to overseas markets have held largely steady over the past week, with only a mild upward tendency in recent weeks. Mills have continued to prioritize the domestic market, where demand has remained robust, over export opportunities. In the Middle East, buying interest has been muted, with market participants pointing to sluggish demand and comfortable stock levels at intermediaries. Although European HRC prices have shown modest increases, they have not reached levels compelling enough to draw interest from major distributors towards imports amid the seasonal slowdown caused by the summer holidays in Europe. This combination of steady offers and subdued overseas appetite has kept Indian export activity relatively restrained.
Sources said that ex-India HRC offers for Europe have increased by around $5/mt week on week, reaching $545-550/mt FOB. According to sources, ex-India HRC have been offered in northern Europe at $598-600/mt CFR, while no offers have been voiced in the south as most customers have already left the market for the summer holidays.
In the meantime, according to sources, Indian mills have turned their attention to the domestic market, opting not to offer HRC to the Middle East. “Robust demand at home took priority, while stiff competition from other global suppliers further limited Indian mills´ overseas presence, especially in the Middle East,” an international trader told SteelOrbis. Thus, indicative offers for ex-India HRC have settled at $510-520/mt FOB for the Middle East, the same as last week.
“Buyers in the Middle East have been showing little response to offers, citing weak demand and adequate stocks held by intermediaries. In Europe, local prices were firming up, but not enough to spark interest in imports among major distributors due to the traditional summer lull period,” a market insider said.
However, at least two in trade circles, confirmed a deal for around 12,000 mt of HRC by a western India-based integrated mill at $540-548/mt FOB for delivery to Egypt but most market participants rule this out from being a trend of any emerging sustained buying.
“Sellers are unable to sustain optimism on the export front in the absence of successful deals and too many uncertainties on cross-border trades. Prices are seen to be improving in many steel producing countries. But this is not getting translated into improvements in cross-border trade volumes or acceptable prices. Tariff turbulence has totally disrupted global trade. Without any certainty, very few are willing to venture into import trades unless under compulsion,” an affiliate of Tata Steel Limited told SteelOrbis.