Indian CRC export offers to EU remain range-bound amid recent deal

Imported CRC offers to the European Union (EU) from India remained range-bound. Offers were hovering around $730-735/t CFR Antwerp ($680-690/t FOB east-coast India). Due to low market demand and slow global market sentiments the buyers are cautious and buying activities remained limited. However, a small quantity deal of around 5,000 tonnes (t) has been heard concluded at similar price level for August shipments.

China's CRC export offers fell by $10/t w-o-w to $570/t FOB against $580/t FOB. Moreover, China's steel major, Baosteel, has reduced HRC prices by RMB 100/t ($14/t) m-o-m for August, 2024 sales. Moreover, HRC offers on the Shanghai Futures Exchange (SHFE) fell by RMB 85/t ($12/t) w-o-w to RMB 3,694/t ($508/t) against RMB 3,779/t ($519/t) a week ago. Furthermore, on d-o-d basis the same inched down by RMB 14/t ($2/t) d-o-d as compared to RMB 3,708/t ($510/t) a day ago.

Steel prices in the EU edged up even though demand remained low. This increase came despite expectations, as mills had aimed for higher prices on upcoming September deliveries. The rise is likely due to a lack of competition from cheaper imports, following the introduction of new trade restrictions by the EU in July. Furthermore, Indian mills have been allocated a CRC quota of 164,886 t for first quarter (Q1).

Outlook

The EU steel market is currently in a wait-and-see mode. New import restrictions might benefit European producers, who are already aiming for higher prices in September. This is making Indian CRC offers more attractive for European buyers. However, European market demand scenario will play crucial role in the near-term outlook.