India: HRC export market remains silent ahead of Christmas holidays

• India’s offers to ME, Europe stable w-o-w
• Chinese offers to ME decline by $5/t w-o-w

Indian HRC export offers to the Middle East (ME) remained largely stable w-o-w. However, trading activity in the region slowed down considerably ahead of the upcoming Christmas and New Year holidays, informed ME-based sources. Meanwhile, the European market also experienced limited activity. With the holiday season approaching, many players in the EU are already absent from the market.

Market updates

1. India’s offers to ME stable w-o-w: Indian HRC export offers to the Middle East remained stable w-o-w, at $540-545/tonne (t) CFR UAE. Slow demand led to limited trade activities in the region, sources informed BigMint. However, competitive Chinese offers remain a concern. Chinese HRC export offers to the ME dropped by $5/t w-o-w to $515-520/t CFR against $520-525/t CFR UAE in the previous week.

2. India’s offers to Europe unchanged w-o-w: India’s HRC export offers to Europe held steady w-o-w at $590-595/t CFR Antwerp ($540-545/t FOB east coast India) for S275, 3 mm material. The European market remained subdued, with trading activity significantly slowed down due to the impending holiday season. Meanwhile, ArcelorMittal, the largest steel producer in Europe, announced a hike in HRC prices of around EUR 30/t ($31/t) for February-March 2025 deliveries, citing stronger apparent demand from the automotive industry in the first quarter of 2025.

3. China’s offers to Vietnam drop w-o-w: China’s HRC (SAE1006) export offers to Vietnam dropped by $5/t w-o-w to $500-505/t CFR Ho Chi Minh City (HCMC) amid a decline in Shanghai Futures Exchange (SHFE) prices. Futures fell by RMB 75/t ($10/t) w-o-w to RMB 3,417/t ($468/t) on 24 December against RMB 3,492/t ($479/t) on 17 December. However, on a d-o-d basis, futures remained largely stable compared to RMB 3,413/t ($467/t) on 23 December.

Outlook

The global HRC market is expected to remain subdued in the near term due to the upcoming holiday season. Trading activity in key regions such as the Middle East and Europe is likely to remain muted, as market participants will be on holiday.