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Indian HRC exports remain silent amid summer slowdown in Europe

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BigMint Bureau

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16 Jul 2024, 19:11 IST

Indian HRC exports remain silent amid summer slowdown in Europe

Indian hot-rolled coil (HRC) export offers to Southeast Asia and the Middle East (ME) continued to remain on hold. Competitive Chinese offers along with slow domestic demand in the regions kept Indian steel mills out of exports. Moreover, buyers in the European Union (EU) are cautious due to the approaching summer season.

Market updates

1. ME imported HRC offers inch down w-o-w: Imported HRC offers to Middle East from China inched down to $550-555/t CFR UAE. A recent deal for 15,000 t was reportedly concluded at $550/t CFR UAE for shipments arriving in late-August to early-September 2024. Japanese HRC offers are heard around $555/t CFR UAE. However, no firm bookings were heard. While, offers from Taiwan and South Korea were at $580-$585/t CFR UAE, sources informed BigMint. Indian mills are not currently exporting HRC to the ME due to better profitability in the domestic market and competitive pricing from other suppliers.

2. HRC import offers for Vietnam drop w-o-w: Imported offers of China-origin HRC (SAE1006) into Vietnam dropped by $5/t w-o-w to $520-525/t CFR HCMC against $525-530/t CFR HCMC a week ago. Moreover, a deal of around 20,000 t has been heard concluded at similar price levels for September, 2024 shipments. Prices inched down w-o-w amid competitive domestic prices in Vietnam along with volatile China's Shanghai Futures Exchange (SHFE) futures.

3. Mills uphold HRC offers to EU: Indian steel mills hold their HRC export offers (S275, 3mm) to Europe this week, prioritising domestic market. Last heard prices are around $650/t CFR Antwerp. In addition, European HRC prices remain flat amid the summer trading slowdown. The market is in a "wait-and-see" mode, with buyers expecting prices to drop and sellers hoping for a rebound. Demand is low, and mills are reducing production to maintain prices. The market is expected to remain quiet until September, when demand may pick up.

Outlook

The outlook for Indian HRC exports remains mixed. Competitive pricing from China is keeping them out of Southeast Asia and the Middle East. While they had offered to Europe, cautious buyers there and a stagnant market have again kept offers silent. A potential silver lining could be if demand picks up in September, but for now, Indian exports are expected to remain on hold.