Indian HRC export offers on hold amid anti-dumping concerns in global market
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Indian steel mills have continued to withhold their hot rolled coil (HRC) export offers to Southeast Asia and the Middle East (ME) due to the global trend towards protectionism and anti-dumping measures. The European Union (EU) and Vietnam have launched anti-dumping investigations into HRC imports from several key countries, including India, creating significant obstacles for Indian steel exports. Additionally, the summer slowdown in the ME and the presence of competitive Chinese HRC offers have contributed to a subdued export market for Indian HRCs at present.
Market updates
1.ME imported HRC offers fall w-o-w: Chinese HRC export offers to the Middle East fell by $5-10/t w-o-w to $525-535/t CFR UAE against $535-540/t CFR UAE. HRC prices in the Middle East dropped due to a combination of factors, including falling Chinese futures, summer slowdown, and cautious buying behaviour. Despite competitive Chinese offers, no firm deals were heard concluded. Indian mills remained absent from the market due to challenges from Chinese competition.
2.HRC import offers for Vietnam decrease w-o-w: Chinese HRC (SAE1006) export offers to Vietnam decreased by $5/t w-o-w to $500-510/t CFR HCMC against $505-515/t CFR last week. However, no firm deals have been heard concluded. SHFE HRC futures dropped by RMB 34/t ($5/t) d-o-d to RMB 3,357/t ($468/t) as compared to RMB 3,391/t ($473/t) a day ago. Moreover, the same sharply fell by RMB 147/t ($21/t) w-o-w against RMB 3,504/t ($489/t) in the previous week.
3. Mills uphold HRC offers to EU: Indian steel mills are not actively offering to Europe currently and are waiting until official dates of anti-dumping investigation before coming back to market. In addition, the European HRC market is currently flat due to low seasonal demand. Domestic HRC producers want to raise prices after summer, but weak demand from the auto and construction sectors casted doubt on success.
Outlook
The outlook for Indian steel mills exporting hot rolled coil to Southeast Asia and the Middle East is uncertain. Anti-dumping investigations by the EU pose significant hurdles, potentially limiting Indian exports. Moreover, aggressive pricing from Chinese competitors is intensifying the challenges for Indian HRC in these markets. "To remain competitive, Indian steelmakers may need to lower prices and speed up deliveries," said a reliable source.
