- market sluggish on unfavourable euro-dollar parity
- Chinese offers to ME market drop by $5/t w-o-w
Indian mills have decreased their HRC (S275) FOB offers with the current one hovering at $585-590/t main port India (destination EU). Moreover, “the current sluggishness in exports is attributed to unfavourable euro-dollar parity”, sources informed Bigmint. In addition, trade activities in the region remained limited as European (EU) buyers remained cautious. However, Indian mills are not actively offering to the Middle East (ME) market amid competitive Chinese offers and higher domestic realisations.
1. HRC export offers to EU decline w-o-w: Indian HRC export offers to the EU declined by $10/t w-o-w to $635-640/t CFR Antwerp ($585-590/t FOB eastern coast of India) as compared to$645-650/t CFR last week.
Furthermore, a reliable source informed BigMint: “The current sluggishness in exports is attributed to the unfavourable euro-dollar parity, which has made buyers cautious.” European HRC demand remains stable amidst limited trading activity and post-Easter market calm, with some optimism on near-term prospects.
2. Imported HRC offers to ME drop w-o-w: Chinese HRC (S235 and S275) export offers to the Middle East (ME) dropped by $5/t w-o-w to $480-485/t CFR UAE as compared to $485-490/t CFR last week. Moreover, a small deal of around 5,000 t has been heard concluded at similar price levels for May shipments. However, “market sentiments in the ME remain stable for the week,” said a reliable source. Indian mills, however, are not actively offering HRCs to the ME due to competitive Chinese offers and higher domestic realisation.
HRC futures on the Shanghai Futures Exchange (SHFE) decreased by RMB 33/t ($5/t) d-o-d to RMB 3,218/t ($442/t) from RMB 3,251/t ($447/t) a day ago. However, on a w-o-w basis, HRC futures edged up by RMB 30/t ($4/t) against RMB 3,188/t ($438/t) last week.
Outlook
In the near term, Indian HRC export offers to Europe are expected to remain largely range-bound at current levels, as EU buyers are being careful due to the euro-dollar exchange rate, even though there is a bit of hope for demand later. Concurrently, the Middle East HRC market is anticipated to maintain its current stability despite ongoing competitive pressure from Chinese offers. This suggests Indian mills will likely hold their HRC offers to the ME, driven by more favourable returns in the domestic market.
Leave a Reply