Indian HRC export market remains quiet amid muted global sentiments

Indian steel hot-rolled coil (HRC) exports remained quiet this week due to weakening market sentiments, with offers to the Middle East (ME) remaining steady amid competitive quotes from other regions.

While, offers to Europe (EU) remained stable amid slow demand in the region, market participants are currently in a wait-and-watch-mode. Moreover, ongoing anti-dumping investigations have kept global market sentiments sluggish.

Market updates

1.HRC export offers to ME: Indian HRC export prices to the Middle East remained stable at $560/t CFR, as per BigMint sources. Chinese HRC (grades S235 and S275) export offers to ME remained range-bound w-o-w to $530-535/t CFR UAE. However, Shanghai Futures Exchange (SHFE) dropped RMB 93/t ($13/t) w-o-w to RMB 3,503/t ($484/t) from RMB 3,596/t ($497/t) last week. D-o-d, prices inched down by RMB 11/t ($2/t) from RMB 3,514/t ($486/t).

2.HRC offers to EU rangebound: India's HRC export offers to Europe (S275, 3mm) continued to remain range-bounded at $590-595/t CFR Antwerp ($540-545/t FOB, east coast India). Indian steel mills' export offers struggled to gain traction in the European market. High export offers, relative to domestic prices, and EU trade restrictions limit competitiveness. Furthermore, India utilised a mere 3% of its EU steel safeguard quota for HRC in the October-December quarter, impeded by sluggish European demand and ongoing anti-dumping investigations.

3.Chinese offers to Vietnam decrease w-o-w: China's HRC (SAE1006) export offers to Vietnam fell by $10/t w-o-w; offers are hovering around $520-525/t CFR Ho Chi Minh City (HCMC) compared with $530-535/t CFR last week. Formosa Ha Tinh (FHS), Vietnam's leading steel producer, has reduced its HRC prices by approximately $10/t CIF m-o-m, depending on the quantity booked, for late-December and early-January sales. Currently, prices of HRCs (SAE1006, skin-pass) stand at $534-548/t CIF Ho Chi Minh City. This price decrease is attributed to reduced offers from domestic competitors and increased competitive pressure from imported HRC offers from China.

Outlook

The Indian HRC export market is currently quiet due to sluggish global market sentiments and ongoing anti-dumping investigations. Competitive Chinese prices could further intensify the challenges faced by Indian exporters. The outlook remains mixed as market participants are adopting a wait-and-see approach as they closely monitor global economic conditions and trade developments.