Indian HRC export market remains quiet amid subdued global sentiments

Indian steel mills have continued to keep on hold hot-rolled coil (HRC) export offers to Southeast Asia and the Middle East (ME) amid weaker global market sentiments. While HRC offers to Europe remained stable w-o-w, no firm deals were heard concluded as EU buyers are cautious and market participants have partially returned from summer holidays.

Market overview

1.HRC offers to ME decline w-o-w: Chinese HRC export offers to the Middle East have declined by $10/t w-o-w to $500/t CFR UAE from $510-515/t CFR in the previous week. A small deal has been heard concluded at similar levels. However, Chinese prices are increasing with improving SHFE futures. Offers have firmed up slightly to around $500/t CFR after a sharp drop to $485/t CFR at the end of the previous week.

2. Offers to Vietnam drop w-o-w: China's HRC (SAE1006) export offers to Vietnam dropped by $10/t w-o-w to $485/t CFR HCMC against $495-500/t CFR. However, no firm deal has been heard concluded. Chinese SHFE HRC futures have increased by RMB 60/t ($8/t) d-o-d to RMB 3,327/t ($467/t) as compared to RMB 3,267/t ($458/t). Moreover, on w-o-w basis, the same rose by RMB 136/t ($19/t) as against RMB 3,191/t ($448/t) last week.

3. HRC offers to EU remain stable w-o-w: Indian HRC export offers to Europe remained stable w-o-w. Current offers stand at around $620/t CFR Antwerp. Domestically, the EU steel market remains sluggish as participants gradually return from the summer holidays. Many are adopting a wait-and-see approach for the next few weeks. An EU-based source said, "We are anticipating a demand recovery in September but, based on current indications, it will not possibly be a rapid or significant upswing."

Outlook

Chinese SHFE futures and HRC prices are both on the rise, indicating a positive trend. While Indian HRC exports to the EU remain stable with market participants expecting demand recovery in September after the summer break. Moreover, price fluctuations could occur due to shifts in demand, supply, and economic conditions