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India: HRC export market remains silent post-New Year holidays

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BigMint Bureau

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7 Jan 2025, 19:42 IST

India: HRC export market remains silent post-New Year holidays

India's offers to Europe, ME hold firm w-o-w

Chinese offers to ME, Vietnam decline w-o-w

India's hot-rolled coil (HRC) export offers to Europe and the Middle East remained stable w-o-w, while Chinese offers declined across key markets, including the Middle East and Vietnam, due to weakening demand and pricing pressures.

Market updates

1. China's HRC export offers to ME drop w-o-w: Chinese HRC export offers to the Middle East dropped by $10-15/t w-o-w to $500-505/t from $515-520/t last week, leading to pricing pressure for other exporters.

However, Indian HRC export offers to the ME remained stable w-o-w, at around $535/t CFR UAE. Trade activities remained sluggish due to competitive Chinese pricing.

2. India's HRC offers to Europe remain stable post-holidays: India's HRC export offers to Europe remained stable w-o-w at $590-595/t CFR Antwerp ($540-545/t FOB, east coast India) for S275, 3 mm material.

"Indian HRC export offers to the EU remained largely stable. Following the New Year holidays, buyers were focused on observing trends rather than actively purchasing material," informed a source.

Moreover, the European HRC market experienced subdued activity this week, with limited trading due to the holiday season. Market participants remained absent, impacting overall momentum.

3. China's offers to Vietnam fall w-o-w: China's export offers for HRC (SAE1006) to Vietnam dropped by $5/t w-o-w to $490-495/t CFR Ho Chi Minh City, due to weakening demand in Vietnam's steel market.

Meanwhile, Hoa Phat, Vietnam's leading steelmaker, cut its HRC (SAE1006, non-skinpassed) prices by $5/t m-o-m for March-April 2025 sales, sources told BigMint. Revised prices stood at around $519/t or VND 13,220,000/t excluding VAT in southern Vietnam.

Additionally, Chinese HRC futures dropped by RMB 69/t ($9/t) w-o-w to RMB 3,354/t ($458/t) on 7 January against 3,423/t ($468/t) on 31 December.

Outlook

Indian HRC export offers are expected to remain stable or fall slightly, as Chinese ones may decline further due to weakening demand and pricing pressures. This trend is expected to influence global market dynamics, impacting trade flows and prices.