- 5,000 t HRCs booked for EU at $600/t CFR
- China’s HRC offers range-bound w-o-w
BigMint’s India HRC (hot-rolled coil, S275) exports index dropped by $5/tonne (t) w-o-w to $550/t FOB main port amid a recent deal. A deal of around 5,000 t was booked from India to the EU. However, buyers are still cautious in expectation of a summer slowdown, putting pressure on HRC prices. Sluggish market sentiment in the Middle East (ME) persists due to ongoing geopolitical tensions, altering demand and supply dynamics.
Additionally, Indian mills continued to withhold their HRC offers to the Middle East (ME) amid competitive offers from other regions.
Rationale
A confirmed deal (T1) was reported in this publishing window. while six indicative prices were considered as T2 inputs out of the seven inputs received. The final price was an average of T1 and T2 inputs, which stood at $550/t FOB. CFR prices were converted to FOB by deducting freight costs from the buyer or seller.
1. Indian HRC export offers to EU decrease w-o-w: Indian HRC export offers to the EU decreased by $5/t w-o-w to $600/t CFR Antwerp ($550/t FOB eastern Indian port) as compared to $605/t CFR Antwerp, amid a recent deal. A small deal of around 5,000 t for July shipments has been heard concluded at similar price levels. European HRC prices are under continued pressure due to sluggish demand, ample inventories, and a bearish market outlook. Buyers remain cautious, delaying purchases in anticipation of further price corrections. The upcoming summer slowdown, marked by extended holidays, is expected to further dampen market activity.
2. China’s HRC offers to ME range-bound w-o-w: China’s HRC offers to ME remained range-bound for the week with offers hovering at around $475-480/t CFR UAE. “The Middle East’s domestic market is experiencing moderate demand, as end-users are fulfilling their monthly requirements. A potential decrease in demand is anticipated in the coming month, consistent with the typical summer low season,” a source told BigMint.
However, Indian mills have continued to hold HRC offers to ME amid competitive offers and higher domestic realisation.
3. Chinese HRC offers to Vietnam stable w-o-w: Chinese HRC (SAE1006) export offers to Vietnam remined stable at $475/t CFR Ho Chi Minh City (HCMC) with the Vietnamese HRC import market remaining quiet.
However, HRC futures on the Shanghai Futures Exchange (SHFE) marginally increased by RMB 14/t ($2/t) w-o-w to RMB 3,106/t ($433/t) as compared to RMB 3,092/t ($431/t) a week ago. However, on a d-o-d basis, the same edged down by RMB 9/t ($1/t) from RMB 3,115/t ($434/t) a day ago.
Outlook
India HRC exports face a cautious short-term outlook due to sluggish demand in Europe and Middle East. Geopolitical tensions and summer slowdown expectations may lead to delayed purchases, while ample inventories in Europe could keep prices under pressure.
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