India: HRC export index at standstill; mills hold back offers

SteelMint's India HRC (SAE1006) export index remained stable w-o-w at $570-575/tonne (t) FOB east coast India. This week, Indian mills withheld HRC export offers once more since they are currently focusing on the domestic market. Major mills raised hot rolled coil (HRC) and cold rolled coil (CRC) list prices for the month of August by around INR 750-1,000/t ($9-12/t). However, trade volumes are limited because buyers are purchasing on need basis. "There were inquiries from the Middle East (ME) market, but no offers floated by Indian mills," a reliable source informed. An Indian steel mill, however, was heard testing the market at $640-650/t FOB for the European Union (EU), but no deals were reported at the higher end of the spectrum.

Market-wise update:

• Chinese offers flat in Middle East market: Chinese HRC (SAE1006) export offers to the ME market remained stable w-o-w at around $585-590/t CFR UAE. Prices remained stable due to limited market activities "Trading activities in the ME market was very quiet and no major deals were reported," informed an ME-based source. However, Chinese Shanghai Futures Exchange (SHFE) HRC futures (October contract) plummeted by RMB 76/t ($10/t) w-o-w to RMB 3,900/t ($537/t) today as against RMB 3,976/t ($547/t) last week. In addition, Indian mills are not offering to the ME market. Last indicative offers for HRCs (SAE1006) were at around $600-610/t CFR UAE but no new offers were heard recently.
  
  
• Vietnam's imported HRC offers stable w-o-w, Formosa announces hike in prices: Imported offers for China-origin hot-rolled coils (HRC SAE1006) into Vietnam remained stable w-o-w to $580-585/t CFR Vietnam. Limited trade activities in Vietnam were noticed as market participants are in a wait-and-watch mode. Moreover, Vietnam's Formosa Ha Tinh (FHS) raised monthly HRC (SAE 1006, skin pass) prices for late September- early October 2023 by around $25/t CIF m-o-m. Post-revision, prices are in the range of $627-630/t CIF for skin-passed while, for non-skin passed, offers are at around $622-625/t CIF. The company increased prices amid limited import booking as well as rising offers from competitors like Hoa Phat and Baosteel.
  
  
• Europe HRC market quiet; no firm offers from Indian mills: The European market is quiet amid subdued demand due to summer closures. In addition, no offers were heard from Indian mills for Europe again this week. However, an Indian steel major indicated offers of around $685-690/t CFR last week. Since, the European market is quiet and Indian mills have limited allocations, trading activities continued to remain dull this week.
  
  

Outlook

Global HRC market sentiments are currently mixed as Chinese export offers have declined while domestic offers in China, Vietnam and India have witnessed an increase in August.