- Offers to EU rise $10/t w-o-w, but trade remains slow
- Chinese offers to Middle East market stay range-bound
Indian HRC (S275) FOB offers to the European Union (EU) rose w-o-w. However, trade activities in the region remained slow, as traders awaited clearer trends after a quiet session — especially induced by holidays in the regions. “China and Japan have resumed operations after the Labour Day holidays, with a few inquiries emerging in the market, although no deals have been finalized yet,” sources informed BigMint. Furthermore, Chinese HRC offers to the Middle East (ME) remained range-bound post-Labour Day holidays. Moreover, Indian mills opted to withhold export offers to ME, focusing instead on the domestic market amid higher realisations from there.
HRC export offers to EU rise w-o-w: Indian HRC export offers to the EU rose by $10/t w-o-w to $650-655/t CFR Antwerp ($600-605/t FOB eastern coast of India) against $640-645/t CFR seen in the previous week. However, trade activities remained subdued. “Traders are waiting for clearer trends after a quiet session affected by holidays in some areas,” hinted reliable sources. European domestic HRC prices held steady, with a cautious market sentiment prevailing due to low demand and uncertainty.
Imported HRC offers to ME range-bound w-o-w: Chinese HRC (S235 and S275) export offers to the Middle East (ME) remained range-bound at $480-490/t CFR UAE after the Labour Day holidays in China. Additionally demand in the ME region remains weak. Meanwhile, Indian mills have continued to withhold their offers due to competitive Chinese prices and better domestic sales realisations.
Vietnam’s domestic HRC prices drop m-o-m: The Hoa Phat Group has decreased its monthly HRC (SAE1006, non-skin-passed) prices by around $8/t for June shipments. Post-revision, prices are approximately $515/t or VND 13,315,724 /t against $523/t for the southern region in May, excluding VAT. The decline in HRC prices is attributed to weak market sentiment and subdued demand in Vietnam.
Moreover, China’s HRC futures on the Shanghai Futures Exchange (SHFE) inched down by RMB 12/t ($2/t) w-o-w to RMB 3,206/t ($444/t) as compared to RMB 3,218/t ($456/t) a week ago.
Outlook
The global HRC market remained subdued amid weak demand and cautious buying. Indian mills are prioritising the domestic market due to higher realisations while Chinese HRC offers to the Middle East remained competitive post-holidays, keeping Indian mills out of the ME market. However, market activities in the EU are expected to pick up toward the end of this week or early next week. However, overall, trade activity is expected to remain range-bound in the near term.
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