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Indian HRC export offers on hold amid hike in domestic prices

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BigMint Bureau

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4 Jun 2024, 18:43 IST

Indian HRC export offers on hold amid hike in domestic prices

Indian mills continued to hold hot-rolled coils (HRC) export offers to Southeast Asia and the Middle East (ME) for yet another week. Indian mills are more focused towards the domestic market. In addition, some of the major Indian mills have announced an increase of around INR 500-1,100/tonne (t) in price over the end-May 2024 levels, which are effective from 1 June 2024. Furthermore, global market sentiments remained week with limited market demand in the global market and sharp fall in Chinese Shanghai Futures Exchange (SHFE) HRC futures.

Market updates:

1. Chinese HRC export offers to ME fall w-o-w: Chinese HRC export offers to Middle East fell by $5-10/t w-o-w to $570-575/t against $580-585/t a week ago. However, no deals have been heard concluded amid sluggish market demand and decline in SHFE futures. SHFE HRC futures fell by RMB 92/t ($13/t) w-o-w to RMB 3,795/t ($524/t) as compared to RMB 3,887/t ($537/t) in the previous week. Additionally, no firm offers have been heard from Japan, and Indian mills are holding onto their export offers due to limited availability for export and stronger domestic demand.

2. Vietnam's import offers range-bound w-o-w: Imported offers of China-origin HRC (SAE1006) into Vietnam dropped by $5-10/t w-o-w to $550-555/t CFR Vietnam, sources informed BigMint. The market participants in Vietnam are cautious amid drop in Chinese HRC prices. Chinese export prices have dropped amid decline in futures. Moreover, market participants are awaiting Vietnamese mills' price announcement.

3. Mills uphold HRC offers to EU: Indian steel mills continued to hold their HRC export offers (S275, 3mm) to Europe this week. In addition, HRC prices in European domestic market remained stable. While steelmakers are offering discounts on extras to maintain base prices and secure summer sales, they're also considering price hikes. This comes after the European Commission announced a 15% import cap on HRC exceeding existing quotas. However, sluggish demand continues to dampen the European HRC market.

Outlook

Indian mills are prioritising domestic sales and raising prices, while Chinese exports are dropping due to weak demand and falling futures. Vietnamese buyers are cautious, and the European market is sluggish despite import restrictions.