- Indian offers fall on slow auto, construction demand in EU
- Corpus Christi holidays also keep trade activities sluggish
BigMint’s India HRC (hot-rolled coil, S275) export index (for the Europe and Middle East) dropped by $15/tonne (t) to $555/t FOB eastern Indian port. Buying interest from the European Union (EU) was weak amid slow demand from the automotive and construction sectors. Moreover, buyers in the EU were cautious, resulting in slow trade activities ahead of the Corpus Christi holiday (19 June 2025) in some European regions.
Additionally, Indian mills continued to withhold their HRC offers to the Middle East (ME) amid competitive offers from other regions.
Rationale
No confirmed deal (T1) was reported in this publishing window. Six indicative prices were considered as T2 inputs out of the nine inputs received. The final price was an average of T1 and T2 inputs, which stood at $555/t FOB. CFR prices were converted to FOB by deducting freight costs from the buyer or seller.
1. Indian offers to EU decline w-o-w: Indian HRC export offers to EU declined by $15/t w-o-w to $605/t CFR Antwerp ($555/t FOB eastern Indian port) as compared to $620-625/t CFR last week.
Despite the price reduction, demand remained sluggish. Market sentiment was muted, as buyers adopted a wait-and-watch approach in expectation of further price corrections, driven by weak consumption from major downstream sectors such as automotive and construction.
2. China’s HRC offers to ME drop w-o-w: China’s HRC offers to ME dropped by $5/t w-o-w to around $475-480/t CFR UAE against $480/t CFR last week. However, HRC futures on the Shanghai Futures Exchange (SHFE) increased marginally by RMB 8/t ($1/t) w-o-w to RMB 3,092/t ($430/t) as compared to RMB 3,084/t ($429/t) a week ago. Moreover, on a d-o-d basis, the same remained range-bound.
Furthermore, a significant deal was finalised by a tube maker for approximately 20,000 tonnes (t) of HRCs from Russia at $455-460/t CFR UAE for July 2025 shipment.
However, Indian mills continued to pause HRC offers to ME amid competitive offers.
3. Chinese HRC offers to Vietnam: China’s HRC (SAE1006) offers to Vietnam stood at $475/t CFR Ho Chi Minh City (HCMC). However, the Vietnamese HRC import market continued to experience slow activity. This sluggishness was exacerbated by the approaching rainy season, which is expected to dampen domestic demand.
In addition, Vietnamese steel giant Formosa Ha Tinh (FHS) rolled over HRC prices for July 2025 sales. Following this revision, prices (SAE1006, skin-passed) hovered at $508-518/t CIF HCMC.
Outlook
Indian HRC exporters may continue to struggle in the EU due to weak demand and buyer caution over potential price drops, despite lower offers. In the Middle East, Russian cargoes are gaining traction with their competitive prices, posing a challenge to Indian bookings. Meanwhile, geopolitical issues persist in the ME region, which, along with competitive offers from other countries, may continue to keep Indian mills away from exports to the ME region.
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