Indian hot-rolled coil (HRC, SAE 1006) export offers to the Middle East remained absent this week due to the Eid holidays in the region. Moreover, Indian HRC offers to Europe have remained unchanged w-o-w amid stricter safeguard limits and sluggish demand.
1. ME’s imported HRC offers stable: China’s HRC export offers to the Middle East continue to remain stable this week. Last heard offers were around $490-500/t CFR UAE. This stability in prices is attributed to the Eid holidays in the ME due to which trade activities remained subdued. Indian mills are not actively offering to the ME due to competitive Chinese prices and sluggish market activities in the region.
2.India’s HRC export offers to EU firm w-o-w: Indian HRC export offers to the EU held steady at $630-635/t CFR Antwerp w-o-w, attributed to tougher safeguards. European domestic HRC prices also remained stable, though buyers expressed uncertainty about further price increase, citing weak end-user demand. Domestic supply constraints and stricter safeguards limited buyer options.
3. China’s HRC offers to Vietnam: Chinese HRC (SAE1006) export offers to Vietnam exhibited stability at $500/t CFR Ho Chi Minh City (HCMC) amid subdued domestic demand.
HRC futures on the Shanghai Futures Exchange (SHFE) stood at RMB 3,344/t ($460/t), dropping by RMB 38/t ($5/t) w-o-w against RMB 3,382/t ($465/t) last week. D-o-d, SHFE HRC offers declined marginally by RMB 7/t ($1/t) as compared to RMB 3,351/t ($461/t) yesterday.
Outlook
India’s steel export market participants are expected to remain cautious in the short term even as offers to Europe and the Middle East facing pressure amid weak demand and price volatility. Post-Eid holidays, the ME market may rebound gradually. However, Indian mills may struggle to maintain export offers due to competitive Chinese pricing and pressure from fluctuating Chinese HRC futures.
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