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Indian HRC export offers to Europe drop w-o-w on weak demand

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BigMint Bureau

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10 Sep 2024, 20:56 IST

Indian HRC export offers to Europe drop w-o-w on weak demand

Indian hot-rolled coil (HRC) export offers to Europe declined by $5-10/tonne (t) w-o-w amid weaker global market sentiment. Additionally, reduced demand in sectors such as automotive and construction, along with ongoing anti-dumping and safeguard measures, has further dampened market conditions. Meanwhile, Indian mills have continued to hold their HRC offers steady in the Southeast Asia and Middle East (ME) regions.

Market overview

1.HRC offers to EU drop w-o-w: India's HRC export offers to the European Union (EU) (S275, 3mm) have dropped by around $5-10/t w-o-w, with current offers at $600-605/t CFR Antwerp ($555-560/t FOB, East Coast India), down from $605-610/t CFR Antwerp last week. The European HRC market remains stagnant, primarily due to a continued lack of demand from key sectors like automotive and construction. Although imported prices have decreased slightly compared to the previous week, buyer interest in overseas HRC remains limited. This reluctance is largely due to ongoing anti-dumping investigations and safeguard measures against certain countries.

2.HRC offers to ME fall w-o-w: Chinese HRC export prices (grades S235 and S275) to the ME have fallen by $10/t w-o-w to $490/t CFR UAE, down from $500/t CFR UAE, amid low market sentiment. Meanwhile, Chinese SHFE HRC futures have decreased by RMB 111/t ($16/t) w-o-w to RMB 3,145/t ($442/t), compared to RMB 3,256/t ($457/t) last week. However, d-o-d, the futures have risen by RMB 63/t ($9/t) from RMB 3,082/t ($433/t) the previous day.

3.Offers to Vietnam decline w-o-w: China's HRC (SAE1006) export offers to Vietnam have declined by $15/t w-o-w to $470/t CFR HCMC, down from $485/t CFR HCMC the previous week. Additionally, Hoa Phat Group, Vietnam's leading industrial manufacturer, has reduced its HRC prices by $15/t for October-November 2024 sales due to weak demand and increased Chinese imports. The revised prices are now around $515/t in the southern region.

Outlook

The overall outlook for the HRC market is mixed due to continued weak demand across various sectors, which could result in further short-term price declines. However, there is potential for a gradual recovery if global economic conditions improve and demand in key sectors strengthens. Additionally, any significant changes in trade policies or regulations could also impact market dynamics.