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Indian HRC export market remains sluggish amid weaker global sentiments

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BigMint Bureau

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19 Nov 2024, 18:57 IST

Indian HRC export market remains sluggish amid weaker global sentiments

Indian steel HRC exports remained sluggish this week as global market sentiments weakened further. Indian offers to the Middle East (ME) remained largely stable amid competitive quotes from China. Furthermore, a recent deal between China and the Middle East further pressured Indian exports. In contrast, European offers continue to be affected by weak regional demand.

Market updates

1. HRC export offers to ME: Indian HRC export prices to the Middle East (ME) continued to remain stable for the week at $560/t CFR, as per sources. Chinese HRC export prices to the Middle East fell by $10/t w-o-w to $520-525/t CFR UAE against $530-535/t CFR UAE last week amid active trade. A deal of around 50,000-60,000 tonnes was heard concluded at similar price levels.

2. HRC offers to EU range-bound: 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 failed to gain traction in the European market due to high prices relative to domestic rates and EU trade restrictions. The unfavourable US dollar-euro exchange rate further increased import costs. In the EU, domestic HRC prices remained flat amid sluggish trading, with market participants uncertain about the market's direction for Q1CY'25.

3. Chinese offers to Vietnam fall w-o-w: China's HRC (SAE1006) export offers to Vietnam fell by $5-10/t w-o-w to $510-515/t CFR Ho Chi Minh City (HCMC) compared with $520-525/t CFR last week. Shanghai Futures Exchange (SHFE) prices dropped by RMB 28/t ($4/t) w-o-w to RMB 3,475/t ($480/t) from RMB 3,503/t ($484/t) in the previous week. On d-o-d basis, the same increased by RMB 20/t ($3/t), down from RMB 3,455/t ($477/t) a day ago.

Outlook

Chinese steelmakers continue to be highly competitive, offering lower prices and actively seeking export markets. This poses a significant challenge for Indian exporters. The global economic outlook remains sluggish, with geopolitical tensions contributing to concerns about overall steel demand and potential impacts on Indian exports.