India: CRC export offers to Europe increase w-o-w amid recent deal
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Indian CRC export offers to Europe increased by $15/t w-o-w to $640/t FOB east coast, India ($690/t CFR Antwerp) as compared to $625/t a week back. Moreover, a deal of around 10,000 tonnes (t) has been heard concluded at similar price levels for November 2024 shipments.
The European domestic steel market experienced an uptrend in the week under review. However, buyers were sceptical of the sustainability of these price increases due to weak demand. As a result, some buyers have adopted for a wait-and-watch approach due to this rise in offers. Trade restrictions, and a narrow price gap with European production continue to make imports less competitive.
Chinese CRC export offers rose by $35/t w-o-w to $600/t FOB from the previous $565/t.
Chinese hot rolled coil (HRC) offers on the Shanghai Futures Exchange (SHFE) decreased by RMB 93/t ($13/t) to RMB 3,610/t ($511/t) from RMB 3,703/t ($524/t) a day ago. However, the same edged up by RMB 47/t ($7/t) as compared to RMB 3,563/t ($504/t) on 30 September.
Outlook
The European domestic steel market may witness a mixed outlook due to weak demand, leading buyers to be cautious. While the recent price hike may help stabilise the market, it remains unclear whether prices will continue to rise, given the low demand. Additionally, existing trade restrictions could hinder the competitiveness of Indian CRC exports. Furthermore, potential economic downturns, geopolitical tensions, or supply chain disruptions could impact the overall demand for steel products.