Indian CRC export offers to EU fall $10/t w-o-w amid drop in global steel prices

Indian CRC export offers to Europe (EU) fell by $10/t CFR w-o-w to $790-795/t CFR Antwerp ($740-745/t FOB east-coast India) against $800-810/t CFR a week ago. Moreover, a small quantity's deal was heard concluded at $785-790/t CFR Antwerp for late-March 2024 shipment.

Reasons behind price cut

Global CRC export offers fall: In addition, Chinese CRC export offers dropped post-Lunar New Year holidays by $5/t w-o-w to $650/t FOB against the previous $655/t.

China's SHFE HRC futures drop post-holidays: Steel prices in China saw a downward trend post- Lunar New Year holidays, with SHFE HRC futures declining by RMB 70/t ($10/t) to RMB 3908/t ($543/t) against RMB 3,978/t ($553/t) before the holidays. While the market has resumed activity, global steel market sentiments remain sluggish.

Sluggish domestic demand in EU: European domestic steel demand remains sluggish. Importers are hesitant due to long lead times, and the uncertainty surrounding upcoming safeguard quotas. This cautious approach from buyers is further slowing down trading activity in an already sluggish market. Moreover, domestic prices in the EU for CRCs fell due to weak demand and competitive imports. Cheaper imports are putting significant pressure on domestic CRC prices, making it difficult for producers to offer competitive terms.

Indian CRC export volumes drops m-o-m: Indian CRC exports for CY'23 rose 56% to 547,100 tonnes (t) against 349,779 t a year ago. However, CRC exports for January 2024 fell by 6% y-o-y or 4,236 t to 61,487 t against 65,723 t in January 2023. Also, the same declined by 9% m-o-m or 6,048 t against 67,535 t in December 2023.