India hot-rolled coil (HRC, SAE1006) export offers to the European Union (EU) remained static amid slow demand in the region due to the ongoing Easter holidays. Indian HRC export offers to the Middle East (ME) were absent due to competitive Chinese offers, which edged down w-o-w.
1.HRC export offers to EU: Indian HRC export offers to Europe remained stable w-o-w with offers hovering around $630-635/t CFR Antwerp. However, a reliable source indicated that “some Indian mills are likely holding back allocations in anticipation of potential price increase”. Meanwhile, EU’s domestic steel market sentiments remained slow, as market participants are in a festive mood due to the ongoing Easter holidays.
2.ME’s imported HRC offers: Chinese HRC export offers to the Middle East (ME) dropped by $10/t w-o-w to $480-485/t CFR UAE as compared to $490-500/t CFR last week. According to a source, this price decline is attributed to prevailing global trade tensions and uncertainties. However, Indian mills are not actively offering to the ME due to competitive Chinese offers.
3. China’s export offers to Vietnam: Chinese HRC (SAE1006) export offers to Vietnam remained unchanged for the week, which can be attributed to sluggish domestic demand in the country. Last-heard offers were approximately $500/t CFR Ho Chi Minh City (HCMC).
HRC futures on the Shanghai Futures Exchange (SHFE) dropped by RMB 7/t ($1/t) d-o-d to RMB 3,240/t ($443/t) against RMB 3247/t ($444/t) previous week. Moreover, HFE HRC futures remained range-bound.
Outlook
Indian HRC exports offers to the EU remained slow this week due to the Easter holidays from 13-20 April. Market activity is expected to resume post-holidays, potentially affecting dynamics. Meanwhile, ongoing global trade tensions and challenges continue to pose challenges, keeping the outlook mixed.
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