India: SteelMint HRC export index up marginally, market slow ahead of Eid holidays

SteelMint's India HRC (SAE1006) export index rose marginally by $5-10/t at $570-575/tonne (t) FOB east coast India. The Middle East (ME) market is heading into the Eid-ul-Adha holidays (28-30 June) ahead of which fewer unconfirmed deals were heard amidst increased inquiries. Offers to the European (EU) market also rose as buyers are restocking before going for the summer holidays. However, import offers from China into Vietnam were range-bound amid the Dragon boat Festival.

Market-wise updates

1. Indian offers to UAE up marginally: Indian mills have inched up HRCs (HRC SAE1006) offers by $5-10/t w-o-w to around $605-610/t CFR ME against $600-605/t in the preceding week. An Indian steel major has booked HRCs for July or early-August shipments at $610/t CFR ME. However, this is yet to be confirmed by officials. Chinese offers to the Middle East are largely stable at around $590/t CFR ME as China was closed last week on acccount of the Dragon Boat Festival (22-24 June). Furthermore, the Middle East market will be closed on account of the Eid-ul-adha holidays. Market participants are expected to return from holidays next week.

2. Vietnam's imported HRC offers range-bound: Vietnam's imported HRC offers remained largely stable w-o-w as China was out due to the Dragon Boat Festival. Chinese-origin HRC offers into Vietnam were heard at around $585/t CFR. A deal was heard concluded for around 40,000 t of HRCs (SAE1006) from China last week. Meanwhile, market participants are awaiting Hoa Phat's price announcement for August deliveries.

3. Indian HRC export offers to EU inch up: Indian HRC export (S275, 3mm) offers to Europe inched up w-o-w by around $5/t to $660/t CFR against $655/t a week ago. A private Indian steel major booked around 20,000 t of HRCs for export at $655-660/t (EUR 605/t) CFR Antwerp last week for end-July or early-August shipments. This is more of a restocking activity by buyers before they go on the summer vacation in July. Market sources indicated that HRC prices may remain more or less stable at least for a week. However, demand remained weak and only limited restocking was observed.

Outlook

The ongoing festivities in the global market may keep Indian HRC export offers range bound. However, a rise in HRC futures (October 2023 contracts) on the Shanghai Futures Exchange (SHFE) by RMB 59/t ($8/t) d-o-d to RMB 3,804/t ($527/t) has led to mixed sentiments in the market.