- Export sentiment weakens on EU CBAM uncertainty
- Hoa Phat decreases HRC prices amid soft demand
BigMint’s Indian hot-rolled coil (HRC, S275) export index for Europe (EU) fell by $8/t w-o-w to $532/tonne (t) FOB main port amid CBAM uncertainty. The HRC (SAE 1006) export index for the Middle East (ME) and Vietnam dropped by $5/t w-o-w to $490/t FOB. This decline in prices is due to weaker global market sentiments. Moreover, market participants are awaiting CBAM clarity, sources informed BigMint.
1. HRC offers to EU drop w-o-w: Indian HRC export offers to the EU dropped by $8/t w-o-w, with offers hovering around $580-585/t CFR Antwerp ($530-535/t FOB India)
The European HRC market remains uncertain, with buyers and sellers adopting a cautious, wait-and-see approach amid scrutiny of CBAM and EU safeguard measures. While some buyers in the EU market have accepted limited price hikes, momentum remains weaker than mills expected. Producers continue to push for higher first-quarter prices, but buyers doubt the sustainability of these increases given weak demand
2. HRC offers to Middle East stay flat w-o-w: China’s HRC export offers to the Middle East dropped by $5/t w-o-w to $490/t CFR UAE as compared to $495/t CFR UAE last week. “Import prices are under pressure in the ME market; however, trade activity is moderate in the region,” said a ME-based source.
Indian HRC export offers dropped by $5/t w-o-w to around $515/t CFR UAE as compared with $520/t CFR UAE a week ago. Prices dropped amid competitive Chinese prices in the region.
3. Indian HRC offers to Vietnam remain stable w-o-w: Indian HRC export offers to Vietnam remained stable w-o-w at $500/t CFR Ho Chi Minh City (HCMC), while offers from China saw an uptick. However, Vietnamese steel major Hoa Phat Group has decreased its HRC (SAE1006, non-skin-passed) prices by $8/t m-o-m for January-February 2026 sales after keeping them stable for November sales. Post revision, prices in the southern region stood at $520/t or VND 13,680,000/t against $528/t or VND 13,943,756/t, excluding VAT. The decline in HRC prices is attributed to weak market sentiment and subdued demand.
Outlook
Indian HRC export sentiment remains weak amid CBAM uncertainty in the EU, competitive Chinese offers in the Middle East. Prices are expected to stay range-bound with a slight downward bias in the near term.
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