India: HRC export offers to EU rise by $10/t w-o-w after Easter Holidays

Indian mills have increased their HRC (S275) FOB offers to Europe, however, trade activities in the region remained sluggish due to the Easter holidays, sources informed Bigmint. Furthermore, Indian mills are not actively offering to the Middle East (ME) due to competitive Chinese prices and higher domestic realisations.

1.HRC export offers to EU rise w-o-w: Indian HRC export offers to the EU rose by $10-15/t w-o-w to $645-650/t CFR Antwerp as compared to $630-635/t CFR a week ago. “Despite this price increase, trading activity within the EU remained subdued due to the Easter holidays between 17 and 21 April, making the offered prices unviable”, said a credible source. The European domestic steel market also remained sluggish as market participants were on holiday.

2.Imported HRC offers to ME: Chinese HRC (S235 and S275) export offers to the Middle East (ME) increased by $5/t w-o-w to $485-490/t CFR UAE as compared to $480-485/t CFR a week ago. Moreover, a deal of around 12,000 t was concluded at $487/t CFR for May shipments, as per sources. Furthermore, Japan concluded a deal of around 35,000-40,000 t to ME at $505/t CFR level for May shipments. Meanwhile, Indian mills are not actively offering due to competitive Chinese offers and higher domestic realisations.

3. China’s export offers to Vietnam: China’s HRC (SAE1006) export offers to Vietnam remained absent due to anti-dumping duties. Additionally, subdued demand in the Vietnamese market has led to resistance against recent domestic price hikes by local producers.

HRC futures on the Shanghai Futures Exchange (SHFE) stood at RMB 3,188/t ($436/t), down RMB 52/t ($7/t) w-o-w against RMB 3, 240/t ($443/t). However, d-o-d, SHFE HRC futures decreased by RMB 9/t ($1/t) against RMB 3,197/t ($437/t).

Outlook

European market participants have just returned from the Easter holidays and are currently cautious, adopting a wait-and-see approach. Trade activity in Europe is expected to pick up in the near term. However, competitive Chinese offers persist in the Middle East, potentially discouraging active participation from Indian mills amid higher domestic realisations.