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Indian HRC export market remains muted; offers to EU resume after long pause

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BigMint Bureau

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9 Jul 2024, 18:39 IST

Indian HRC export market remains muted; offers to EU resume after long pause

Indian mills have started offering HRC (S275, 3mm) for exports to Europe. However, offers to the Southeast Asia and the Middle East (ME) remain on hold due to sluggish global demand. Competitive prices of Chinese HRC for ME buyers are further discouraging Indian exporters.

"Indian mills have set their HRC export prices for Europe. Mills are currently drawing back from offering to other regions as the prevailing prices are not attractive," sources informed BigMint.

Market updates

1. ME imported HRC offers range-bound: Imported Chinese HRC offers to the ME remained range-bound at $555-560/t CFR. A few inquiries were heard at lower levels, although no deal was heard concluded. Moreover, the summer season in the region has also kept trade activities limited, hinted ME-based sources. Furthermore, no offers were heard from other origins like Japan, India and South Korea.

2. HRC import offers for Vietnam drop w-o-w: Imported offers of China-origin HRC (SAE1006) into Vietnam dropped $5/t w-o-w to $525-530/t CFR HCMC against $530-535/t CFR HCMC a week ago. A deal of around 10,000 t was heard concluded at $525/t CFR HCMC for August shipment. Moreover, China's SHFE HRC futures fell by RMB 56/t ($8/t) to RMB 3,708/t ($510/t) w-o-w against RMB 3,764/t ($518/t). It fell by RMB 26/t ($4/t) against RMB 3734/t ($513/t) d-o-d. Market participants are waiting for Formosa Ha Tinh's (FHS) price announcement.

3. Indian mills resume HRC export offers to Europe: Indian mills have resumed HRC (S275, 3mm) export offers to Europe after nearly a month. Current offers are at $650-660/t CFR Antwerp ($600-610/t FOB east coast India). However, no deal was heard concluded as buyers are cautious with the summer approaching and weak end-user demand amid ample stocks. In addition, domestic prices in Europe have remained stagnant for over a month due to weak demand and unsuccessful price hikes by domestic mills. The market has shown no signs of improvement since May, with low demand, no restocking activity, and aggressive downstream sales persisting.

Outlook

The outlook for Indian HRC exports remains mixed, with limited opportunities and sluggish global demand. While the situation in Europe might offer some hope, much depends on overcoming buyer resistance and the impacts of broader market developments.