Indian HRC export offers to Europe drop w-o-w in fresh deal

Indian HRC export offers to Europe dropped by $10/t w-o-w in a recent deal. However, offers to Southeast Asia and the Middle East (ME) remain on hold due sluggish demand in both the regions.

Market overview

1.HRC offers to EU fall w-o-w: India's HRC export offers to Europe (S275, 3mm) fell by around $10-15/t w-o-w following a recent deal. Current offers are at $605-610/t CFR Antwerp ($555-560/t FOB, east coast India) against $620/t CFR Antwerp a week back. BigMint heard a deal for 10,000 t concluded by an Indian steel mill at $600-605/t CFR Antwerp last week for October shipment. Furthermore, the ongoing EU anti-dumping investigation is causing market concern, with some fearing potential long-term supply shortage due to consumer avoidance of export countries in question.

2.HRC offers to ME remain rangebound: China's hot rolled coil (HRC) export prices to the Middle East (ME) have remained rangebound w-o-w due to sluggish market conditions, with offers at $500/t, delivered to the UAE. In July, China's export volumes to the Middle East reached 2.09 million tonnes (mnt), reflecting decline of 12% m-o-m, down from 2.63 mnt in June.

3.Offers to Vietnam remain stable w-o-w: China's HRC (SAE1006) export offers to Vietnam remained stable w-o-w at $485/t CFR HCMC. However, Chinese SHFE HRC futures have dropped by RMB 56/t ($8/t) d-o-d to RMB 3,256/t ($457/t) as compared to RMB 3,312/t ($465/t) a day ago. Moreover, on w-o-w basis the same declined by RMB 71/t ($10/t) w-o-w against RMB 3,327 ($467/t) last week.

Outlook

Indian steel mill's HRC exports remain uncertain. Despite the current challenging market conditions, there are potential opportunities and factors that could impact prices and demand. European buyers are gradually returning from summer breaks; however, the anti-dumping investigations globally are making market participants cautious.