Indian CRC export offers to EU fall amid subdued trade activities

Indian CRC export offers to the European Union (EU) fell by $5/t w-o-w to $745/t CFR Antwerp ($695-700/t FOB east-coast India) against $750/t a week ago. However, no deals have been heard concluded, as buyers are holding off on restocking.

Traders' markets face sluggishness due to weak demand. Despite the election's end, domestic demand remains low due to factors like monsoon season, increased imports, and upcoming budget announcements. This creates uncertainty for buyers who are prioritising cost-effective purchases.

Global market sentiments

Chinese CRC export offers remained stable at $595/t FOB for the week. Moreover, HRC offers on the Shanghai Futures Exchange (SHFE) edged up by RMB 23/t ($3/t) w-o-w to RMB 3,797/t ($523/t) as compared to RMB 3,774/t ($520/t) a week ago. However, on d-o-d basis the same remained range-bound.

Europe's domestic market scenario

The European domestic steel market is experiencing downtrend, while summer typically brings slower activity, this year's slowdown began much earlier, even before summer season. While demand for existing stock remains stable, there's lack of new orders. There were hopes for a pick-up after the European elections and safeguard quota announcements, but neither demand nor prices have responded as steel mills had anticipated despite their recent price hike attempts.

Outlook

The future outlook for Indian CRC exports is uncertain. Lower export offers face sluggish demand due to monsoon season and upcoming budget announcements in India. European demand is also weak despite a slight rise in Chinese auto sales. A slow summer season is expected with stable prices in China but no significant improvement foreseen. Overall, uncertainty and weak demand are expected to continue in the near future.