Indian HRC export market regains momentum

Indian mills have resumed HRC export offers to the European Union (EU) after a gap of almost a couple of months. Indian steel majors have booked around 15,000-20,000 t of HRCs for export at $685-690/t (Euro 639-644/t) CFR Antwerp last weekend for December, 2023, shipment. Moreover, "Buying interest in the EU is improving for downstream products," informed a reliable source which has resulted in improved inquiries for HRCs. Notably, Indian mills have resumed export offers after a gap of around two month's time.

This surge in export bookings is attributed to a recent upswing in buying interest for downstream products within the European Union, according to a reliable source. However, Indian mills continued to keep hot-rolled coil (HRC) export offers on hold for Southeast Asia and the Middle East (ME).

Market updates

1. Imported HRC offers for ME remains stable w-o-w: Chinese HRC (SAE1006) export offers to the ME were stable w-o-w at $590-595/t CFR UAE. Market demand in the ME market was subdued and buyers were in a wait and watch mode due to hike in SHFE HRC futures, the ongoing geopolitical issues has also kept trading activities limited. Moreover, no offers were heard from Japan. Indian mills have also not resumed HRC export offers for the ME market as Chinese prices are still competitive.

2. Vietnam's domestic HRC price hike on the cards: Vietnamese steel major Formosa Ha Tinh (FHS) is heard to increase offers by $10/t CIF HCMC, with previous discounts being cut off, a total increase of $30/t is expected, as per sources. However, no official confirmation was received till the time of publishing this report.

Outlook

Market participants in India is in a festive mood, with the ongoing Diwali Holidays. Market scenario more or less is expected to remain stable this week as trading activities will be limited. Mills have commenced export offers to the EU, however, offers for other origin will still remain silent.

Moreover, Chinese steel major, Baosteel too has raised HRC prices for December, 2023 sales by RMB 100/t ($14/t) m-o-m, sources informed SteelMint. Prices of thick plates have increased by RMB 50/t ($7/t) m-o-m. The company increased prices amid rise in Chinese domestic prices and SHFE HRC futures over the last couple of weeks owing to production cuts and government stimulus measures.