- 40,000 t booked at $600/t for Aug shipment
- Price cut expectations slow down buying in EU
BigMint’s India HRC (S275) export index remained stable w-o-w at $545/tonne (t) FOB main port. A significant deal for August shipment provided some support, yet overall European buying interest stayed cautious amid the summer slowdown.
Indian mills also maintained a cautious stance towards exporting to the Middle East due to stronger domestic realisations, competitive Chinese offers, and geopolitical uncertainty.
Meanwhile, the Middle East steel market remained vigilant about the potential impact of Trump’s proposed tariffs, which could significantly influence global trade flows, pricing, and local production strategies.
1. Indian HRC export offers to EU remain stable w-o-w: Indian HRC export offers to the EU remained stable w-o-w at $595/t CFR Antwerp ($545/t FOB main port India). Moreover, a deal of around 40,000 t was heard concluded at $600/t CFR Antwerp for August shipment.
However, Europe’s HRC market remained bearish as of early-July, with ample domestic and import supply squeezing margins. Moreover, buying activity remained slow, with most consumers holding off on purchases in expectation of potential price drops through the summer. Overall, sentiment is expected to stay cautious until August-September.
2. Chinese HRC offers to ME rise w-o-w: Chinese HRC (S235 and S275) export offers to the Middle East rose by $5/t w-o-w to $480/t CFR UAE, from $475/t CFR. Market sentiment in the region remained subdued due to the ongoing summer season and geopolitical tensions. A source noted that “the summer months typically bring a slowdown, which is likely to continue in short term”.
Meanwhile, Indian mills continued to keep their HRC offers to the Middle East on hold due to competitive prices and stronger domestic realisations.
3. Chinese HRC offers to Vietnam unchanged w-o-w: Chinese HRC (SAE1006) export offers to Vietnam remained unchanged for the week at $475/t CFR Ho Chi Minh City (HCMC), with the Vietnamese market continuing to see muted activity.
HRC futures on the Shanghai Futures Exchange (SHFE) increased by RMB 66/t ($9/t) w-o-w to RMB 3,187/t ($444/t) as compared to RMB 3,121/t ($435/t) a week ago. However, on a d-o-d basis, the same remained range-bound.
Outlook
India’s HRC export market may continue to face challenges from subdued global demand and escalating geopolitical uncertainties. The Middle East also remains vulnerable, with buyers closely monitoring potential shifts in US trade policy. Amid seasonal slowdowns and intense price competition, Indian mills are likely to maintain a cautious approach in their export strategies.
Leave a Reply