India: SteelMint's HRC export index stable amid low buying interest

SteelMint's India HRC (SAE 1006) export index (for South East Asia and the Middle East) remained unchanged w-o-w at $580/t FOB east coast India. Demand in the Middle East (ME) market is slow. "Everyday we hear one new project announcement in the ME but it is not translating into demand," said a source.

In addition, no deals of Indian HRC were heard for the EU. "Offers from the European mills have moved down and so imports are not an attractive option, informed a source. Furthermore, Indian mills have limited allocations and are more focused on domestic market amid higher realisations.

Market updates

Chinese HRC prices for ME range-bound: Chinese HRC (SAE1006) export offers to the ME market remained stable w-o-w at $580-590/t CFR UAE. "Market demand in the Middle East is weak at the moment," said an ME-based source. "Price levels have been similar over the last few weeks and some buyers seem to be getting good offers from China," hinted another source. Indian mills have not been in the market for many weeks now, with last indications heard at around $615-620/t CFR UAE.

Vietnam HRC import offers stable: Imported offers for China-origin hot-rolled coils (SAE1006) into Vietnam are stable w-o-w to $565-570/t CFR. Subdued demand in Vietnam along with drop in domestic prices have kept offers stable. In addition, China's Shanghai Futures Exchange (SHFE) prices for January contracts also remained volatile.

Vietnam's Formosa Ha Tinh (FHS) has revised HRC (SAE 1006, skinpass) offers lower for late October-early November by around $13/t CIF m-o-m. Post revision, prices of skinpass HRC are in the range of $593-597/t CIF, depending on order volumes. Price cuts are due to the sluggish Vietnamese steel market, with weak downstream demand from the construction and manufacturing sectors.

EU mills cut offers: Indian HRC export (S275, 3mm) offers to Europe continued to remain stable w-o-w at $690-695/t CFR Antwerp. The decline in European steel prices has made imports less profitable for buyers. However, trading activities remained low despite lower domestic prices due to bearish market sentiments in the EU. In addition, EU buyers are currently in a wait-and-watch mode, as they are waiting for Q4 import quotas, and have opted to remain out of the market for the moment.

Outlook

Market sentiments are mixed, with Indian mills having limited HRC allocations and higher realisation in domestic market. Market participants are waiting for EU buyers to return after the summer maintenance break. However, although buyers have returned, they are opting to wait for new import quotas expected to be released in early-October.