Chinese HRC export offers to the Middle East (ME) remained range-bound this week amid a general lack of trade activity. Offers from Chinese tier-1 mills are hovering at around $560-565/t CFR UAE, while, Chinese tier 2 mills’ current offers are ranging between $540-545/t CFR for the week under review.
However, Indian HRC export price indications to the Middle East fell by $10/t to $590-600/t CFR UAE against $600/t CFR last week, informed a source. Moreover, no deal has been heard concluded as the majority of the mills are holding back offers amidst the maintenance shutdowns.
Factors affecting imported HRC prices
Domestic market sentiments: Geo-political conflicts can indirectly affect global steel prices due to supply chain disruptions, and investor speculation. Moreover, “Markets are nervous due to the continued dip in prices and the regional tensions due to the ongoing geo-political conflicts,” said an ME-based source.
Chinese SHFE HRC futures rise w-o-w: The Shanghai Futures Exchange (SHFE) has continued showing its upward trend for the week. SHFE HRC futures rose by RMB 35/t ($5/t) w-o-w to RMB 3,784/t ($523/t) on 16 April 2024, against RMB 3,749/t ($518/t) a week ago. Moreover, on a d-o-d basis the same inched up by RMB 9/t ($1/t) as compared to RMB 3,775/t ($522/t) on 15 April 2024. Since, futures are increasing, buyers are in wait-and-see mode.
Outlook: Market participants have just returned after the Eid holidays. Moreover, heavy rains and flooding in Dubai have dampened domestic steel demand, leading to sluggish trading. Fortunately, with improving weather conditions, the market is expected to bounce back.
India’s steel exports to UAE were recorded at 40,184t in Mar’24 as against 69,513t in Feb’24, as per data maintained with BigMint.