India’s steel industry is experiencing a significant increase in export activity, with hot-rolled coil (HRC, SAE 1006) export offers to Europe rising by $20/t w-o-w, largely in response to stronger European domestic prices. Indian mills have adopted a cautious approach towards exports to the Middle East (ME) and Vietnam due to reduced market activity ahead of Eid holidays in the ME and subdued domestic demand in Vietnam.
1. India’s HRC export offers to EU rise w-o-w: Indian HRC export offers to the EU rose by $20-25/t w-o-w to $630-635/t CFR Antwerp as compared to $610-615/t CFR Antwerp a week ago, benefiting from their exemption from EU anti-dumping duties. EU domestic prices are high, prompting Indian mills to offer HRC. The European Commission’s announcement on steel safeguard measures has boosted inquiries for domestic HRC. New anti-dumping duties on HRC imports from Egypt, Vietnam, and Japan will be imposed from 7 April.
2. ME’s imported HRC offers stable: Chinese HRC export offers to the Middle East remained stable w-o-w, with offers hovering at $490-500/t CFR UAE. This price stability is largely due to subdued market sentiment in the region due to approaching Eid holidays, resulting in a temporary slowdown in trade activities.
3. China’s HRC offers to Vietnam: Chinese HRC (SAE1006) export offers to Vietnam stood at $500/t CFR Ho Chi Minh City (HCMC) amid sluggish domestic demand.
HRC futures on the Shanghai Futures Exchange (SHFE) stood at RMB 3,382/t ($466/t), inching up by RMB 9/t ($1/t) w-o-w against RMB 3,373/t ($465/t). While, d-o-d, prices remained rangebound.
Outlook
Indian HRC exports to the EU are expected to experience a short-term boost, fuelled by supportive trade dynamics. In contrast, the Middle East market is currently experiencing a temporary slowdown due to the upcoming Eid holidays.
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