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BigMint: India HRC export index remains range-bound as major mills hold back offers

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BigMint Bureau

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16 Apr 2024, 19:52 IST

BigMint: India HRC export index remains range-bound as major mills hold back offers

Slow trade activities in ME post-Eid holidays, geo-political issues

Major Indian mills plan maintenance shutdown

Vietnam's Formosa reduces HRC prices

BigMint's India HRC (SAE 1006) export index (for the Middle East and Vietnam) remained range-bound w-o-w to around $560/t FOB east coast India. The index remained range-bound as some of the major Indian mills halted export offers due to planned maintenance, resulting in fewer active offers. However, offers to the Middle East (ME) decreased w-o-w due to reduced market activity following Eid holidays and the regional tensions due to geo-political conflicts. Similarly, offers to Europe (EU) also declined w-o-w due to sluggish demand in the European market.

Market updates

1. ME imported HRC price indications fall w-o-w: Indian HRC export price indications to the Middle East fell by $5/t w-o-w to $595-600/t CFR against $600/t CFR last week, informed BigMint sources. While, Chinese HRC export offers to ME remained range-bound for the week. The offers from Chinese tier 1 mills are hovering around $560-565/t CFR UAE, while, Chinese tier 2 mills current offers are ranging between $540-545/t CFR for the week. In addition, market sentiments in ME remained sluggish, "Market participants are nervous due to the continued dip in prices and the regional tensions due to the geo-political conflict," informed a ME-based source.

2. Vietnam's imported HRC prices under pressure as FHS lowers offers: Imported HRC offers from China to Vietnam have seen a decline of $10-15/t CFR w-o-w as compared to the previous week. Chinese HRC (SAE1006 grade) offer is $550/t CFR, down from $560-565/t CFR. Moreover, Vietnamese steel major, Formosa Ha Tinh has reduced HRC prices by $10/t m-o-m for June-July, 2024 shipments. Subsequent to the revision, prices of HRC (SAE1006, skin pass) stood at around $585-595/t CIF Ho Chi Minh City (HCMC). Meanwhile, non-skin pass coils are at around $580-590/t CIF. In addition, due to uncertainty in global markets caused by China's rising steel futures, Vietnamese steel importers are adopting a wait-and-see approach this week, leading to a quieter Vietnamese steel market with fewer trades.

3. EU HRC import price indications decline w-o-w: Indian HRC export prices of Europe (S275, 3mm) declined by around $5-10/t w-o-w this week to $630-635/t CFR Antwerp ($580-585/t) FOB east coast India against $640-645/t CFR last week. Buyers are cautious and unwilling to commit amid persistently slow demand, leading to a drop in offers from Indian mills. This is further compounded by a major Indian steel producer temporarily halting exports for furnace maintenance. European mills have tried to attract buyers with lower prices, but trading remains sluggish.

Outlook:

The near-term outlook for Indian HRC exports is cautious. A return to growth will depend on an improvement in global market conditions, a pick-up in demand, and the swift completion of maintenance activities at Indian mills.