Indian HRC export trade activities slow down ahead of New Year holidays

Indian HRC export market remained silent due to the Christmas holidays and upcoming New Year holidays. Last heard offers were around $695-700/t CFR Antwerp. Moreover, domestic prices in EU have increased last week and trade activities remained slow, with the market approaching winter holiday stoppages at the end of this week. Moreover, export offers for Southeast Asia and the Middle East (ME) market continued to be on hold from Indian mills.

Market updates

1. Indian HRC export offers to EU silent w-o-w: Indian HRC export (S275, 3mm) offers to Europe have remained silent w-o-w. No firm offers heard this week; last heard offers were around $695-700/t CFR Antwerp. Domestic prices in EU are on a higher side, while market demand in the region remained subdued and no major deals were heard concluded as market participants were not active due to Christmas holidays.

2. Chinese offers for Middle East flat w-o-w: Chinese hot-rolled coil (HRC) export offers to the Middle East remained flat this week at $600-610/t CFR UAE, but market sentiment is expected to weaken due to recent Houthi attacks on the Suez Canal and a surge in freight rates. "Freight rates, however, surged by $1,500/container, adversely impacting all Westbound cargoes," informed an ME-based source. Maersk has resumed operations through the canal, but ongoing security threats and elevated shipping costs are likely to disrupt supply chains and push steel prices higher in the coming weeks.

3. Vietnam's HRC import offers range-bound w-o-w: Chinese HRC offers to Vietnam remained range-bound w-o-w to $580-585/t CFR Antwerp. In addition, Chinese HRC futures have remained volatile in recent days. However, futures have increased by RMB 16/t ($2/t) d-o-d to RMB 4,140/t ($580/t) against RMB 4,124 ($578/t). While, trade activities in Vietnam have been quiet due to the Christmas holidays, which is impacting the overall market sentiment. Furthermore, trade activities are further expected to remain weak with the upcoming New Year holidays.

Outlook

Global market sentiments are expected to remain weak next week, market participants will be on a holiday mode with New year approaching. However, the freight rates may increase due to the ongoing issues in Suez Canal.