- Chinese offers to ME steady ahead of festival
- Indian mills’ offers to EU remain steady w-o-w
Indian hot rolled coil (HRC) (S275) export offers to the European Union (EU) stayed firm w-o-w. However, trade activities in the region remained slow.
Additionally, Chinese HRC offers to the Middle East (ME) held steady w-o-w, as cargoes were booked for end-July shipments amid the upcoming Eid-al-Adha festival in the region. Indian mills are not actively making offers to the ME amid competitive Chinese prices, especially as the former are securing higher profit margins in the domestic market.
1. Indian offers to EU stable w-o-w: Indian HRC export offers remained range-bound w-o-w, hovering at around $630-635/t CFR Antwerp ($580-585/t FOB eastern Indian port). Moreover, the EU HRC market is under pressure from falling demand and seasonal uncertainties. Additionally, Indian steel producers are reportedly focusing more on the domestic market, where price realisations are more favourable.
2. Chinese HRC offers to ME hold steady: China’s HRC (S235 and S275) export offers to the ME remained range-bound, ranging around $480-485/t CFR UAE. Moreover, a deal of around 30,000-35,000 tonnes (t) was concluded with a tube maker at $477/ CFR UAE for July shipments, as per BigMint sources. However, “demand remains stable ahead of Eid al-Adha in Middle East”, says a reliable source. Meanwhile, Indian mills aren’t actively offering due to China’s competitive pricing.
Outlook
Indian HRC export offers to the EU are likely to stay range-bound as mills focus on the more profitable domestic market amid weak EU demand. Moreover, Chinese HRC offers to the ME may remain stable ahead of Eid, with Indian mills refraining from active offers amid competitive Chinese pricing. Overall, export activity is likely to stay subdued in the near term.
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