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Indian CRC export offers to EU fall w-o-w amid sluggish market sentiments

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BigMint Bureau

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21 Aug 2024, 18:41 IST

Indian CRC export offers to EU fall w-o-w amid sluggish market sentiments

Indian cold rolled coil (CRC) export offers to Europe fell by $10/t w-o-w to $715-720/tonne (t) CFR Antwerp ($665-670/t FOB east-coast India) as compared to $725-730/t CFR Antwerp last week. European CRC coil prices remained under pressure due to sluggish demand. The slow demand from major industries, particularly automotive and construction, led to a subdued market for CRC in Europe.

Moreover, European hot rolled coil (HRC) market remained subdued during summer, primarily due to sluggish demand and ample supply. Weak end-user consumption and well-stocked inventories limited buyer urgency to replenish stocks.

Recent news of the European Commission's anti-dumping investigation into HRC imports from Vietnam, India, Japan, and Egypt has further dampened market sentiment. Although the market is expected to improve after the summer break, concerns about real demand and the potential impact of the anti-dumping probe have cast uncertainty over a significant price recovery. Meanwhile, CRC export offers have also decreased by $15/t w-o-w to $520/t FOB, down from $535/t FOB the previous week.

Chinese HRC offers on the Shanghai Futures Exchange (SHFE) slightly declined by RMB 13/t ($2/t) w-o-w to RMB 3,265/t ($458/t), down from RMB 3,278/t ($460/t). However, on a d-o-d basis, prices edged up by RMB 74/t ($10/t) to RMB 3,265/t ($458/t) from RMB 3,191/t ($447/t) the previous day.

Outlook

The outlook for the European CRC market remains challenging due to weak downstream demand, especially in the automotive and construction sectors. Although some improvement is expected after the summer break, a significant price recovery remains uncertain due to persistent concerns about actual demand and the potential impact of the ongoing anti-dumping investigation.