- China’s offers to ME decrease by $5/t
- SHFE HRC futures drops.
BigMint’s India hot-rolled coil (HRC, SAE1006) export index for the Middle East (ME) and Vietnam remained stable w-o-w. However, export offers to Europe declined w-o-w due to ongoing anti-dumping probes. Additionally, Indian mills faced sluggish trading in the ME market due to competitive Chinese prices.
1. HRC offers to ME show mixed trends: Chinese HRC export offers to the ME dropped by $5/tonne (t) to $495/t CFR UAE as compared to $500-505/t a week ago. Additionally, HRC futures on the Shanghai Futures Exchange (SHFE) declined. On a d-o-d basis, futures fell by RMB 33/t ($5/t) to RMB 3,419/t ($470/t) against RMB 3,386/t ($465/t) the previous day. W-o-w, futures decreased marginally by RMB 9/t ($1/t) from RMB 3,410/t ($468/t) last week.
“The ME market is experiencing stable demand ahead of the holy month of Ramadan, with tube and pipe manufacturers actively expanding their operations. The construction sector is a key driver of demand, and its ongoing strength is supporting the region’s steel industry,” said a source.
However, Indian HRC export offers to the ME remained range-bound at around $525-530/t CFR UAE, despite competitive Chinese quotes.
2. India’s HRC export offers to Europe drop: India’s indicative HRC (S275, 3 mm) export offers to Europe dropped by $10-15/t w-o-w to $570-580/t CFR Antwerp against $580-590/t CFR previous week, amid slow trade activity.
In contrast, European HRC prices increased due to restocking and expected import restrictions. Although actual demand was subdued, decreased imports, driven partly by the European Commission’s steel safeguard measures review, supported price gains.
3. China’s HRC offers to Vietnam range-bound: China’s HRC (SAE1006) export offers to Vietnam remained range-bound w-o-w, with offers hovering at around $485-$490/t CFR Ho Chi Minh City (HCMC).
Notably, Formosa Ha Tinh (FHS), a Vietnamese steel giant, reduced its HRC prices by approximately $21/t m-o-m for March 2025 sales. Following this adjustment, FHS’s HRC prices (SAE1006, skin-passed) ranged at $494-506/t CIF HCMC depending on the quantity booked, as compared to $515/t CIF HCMC a month ago.
Outlook
The HRC export market will likely remain competitive, with Chinese offers influencing India’s. However, the ME market is likely to witness a surge in demand ahead of Ramadan. Meanwhile, the ongoing anti-dumping investigations will continue to dampen exports to Europe.
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