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Indian HRC export market remains silent amid Eid holidays, weaker global sentiments

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BigMint Bureau

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18 Jun 2024, 19:17 IST

Indian HRC export market remains silent amid Eid holidays, weaker global sentiments

Chinese offers remain competitive, EU demand sluggish

FHS reduces HRC prices by $30/t for Aug shipments

Indian hot-rolled coils (HRC) exports to Southeast Asia and the Middle East (ME) remained silent for yet another week amid sluggish global market sentiments and Eid holidays. Chinese prices are still competitive and some deals were heard to have been concluded from China to ME ahead of the Eid holidays. Moreover, the European Union (EU) market also remained slow, with buyers hesitant as domestic prices are higher amid extended safeguard measures from the EU limiting imports from certain countries.

Market updates:

1. ME imported HRC offers decline w-o-w: Imported HRC offers to the Middle East (ME) dipped due to the Eid-al-Adha festival, being observed over June 16-18, 2024. China's HRC (grades S235 and S275) export offers to ME fell by $5/t w-o-w. Offers are now hovering at $560-565/t CFR UAE, against $565-570/t in the previous week. It was heard that some Chinese sellers concluded deals of 15,000-30,000 t of HRCs, for end-July-early-August shipments, to ME tube makers. Meanwhile, there were no firm offers from Japanese mills. However, Shanghai Futures Exchange (SHFE) HRC futures rose slightly, up by RMB 19/t ($3/t) d-o-d to RMB 3,802/t ($524/t) compared to RMB 3,783/t ($521/t) a day earlier.

2. Vietnam's import offers drop w-o-w: Imported offers of China-origin HRC (SAE1006) into Vietnam dropped by $5/t w-o-w to $545-550t CFR against $550-555/t CFR Vietnam. Prices fell amid decreased domestic prices in the region. Vietnamese steel major Formosa Ha Tinh reduced HRC prices by $30/t m-o-m for August 2024 shipments. Subsequent to the revision, prices of HRCs (SAE1006, skin pass) stand at around $570-580/t CIF Ho Chi Minh City (HCMC). Meanwhile, non-skin pass coils are at around $565-575/t CIF, sources informed BigMint.

3. Indian mills continue to hold HRC offers to EU: Indian steel mills continued to hold their HRC export offers (S275, 3mm) to Europe this week, prioritizing the domestic market. In addition, European HRC prices saw a slight increase this week despite weak demand. This price increase comes amid extended safeguard measures by the EU, which will limit imports from certain countries and potentially tighten supply to Europe. Steel mills are raising offers in response to these changes, while buyers remain cautious.

Outlook

The outlook for Indian HRC exports remains mixed. A strong post-Eid rebound in buying activity, coupled with a stabilization in global and Chinese pricing, could lead to a positive turnaround. However, continued sluggish demand and volatile pricing could prolong the current slump.