Indian CRC export offers to EU remain range-bound amid low domestic demand

Indian CRC export offers to the European Union (EU) remained range-bound w-o-w at $725-730/t CFR Antwerp ($675-680/t FOB east-coast India) due to low domestic demand and low global market sentiments. However, a deal of around 3,500 tonnes (t) has been heard concluded at similar levels for late August shipments.

Chinese CRC export offers remained flat for the week at $570/t FOB.

China's HRC offers on the Shanghai Futures Exchange (SHFE) inched down by RMB 28/t ($4/t) d-o-d to RMB 3,701/t ($510/t) as compared to RMB 3,729/t ($514/t) a day ago. However, on a w-o-w basis the same remained range-bound.

The European domestic HRC market remains subdued as the industry enters its summer slowdown. Low demand and ample supply have combined to create a stagnant market with little price movement. Buyers are hesitant to commit to new orders due to uncertainty about post-summer price trends. Consumption remains weak, allowing distributors and steel service centres to work through their still-high inventory levels. Intense downstream competition further dampens market activity.

Outlook

The market is expected to remain subdued through the summer months due to low demand, high inventory levels, and the ongoing summer break in Europe. European HRC prices are likely to stabilise at current levels, with limited price fluctuations expected. However, a potential shift in market dynamics is anticipated post-summer holidays.