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Indian HRC exports remain slow amid competitive Chinese prices

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BigMint Bureau

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26 Nov 2024, 18:48 IST

Indian HRC exports remain slow amid competitive Chinese prices

Indian steel HRC exports remained slow amid competitive Chinese prices in the global market. Indian mills are not actively offering to the Middle East (ME) market ahead of National Day holidays in the ME region and cheaper alternatives from China. Moreover, the European market has also witnessed limited trade activity, with Indian mills maintaining stable export offers. India's utilization of its allocated HRC quota for Europe stands at a mere 8% as of 22 November, 2024.

Market updates

1. ME HRC market slows down ahead of holidays: China's HRC export prices to the Middle East (ME) continued to remain stable for the week at around $525/t CFR UAE. The Middle East HRC market has experienced a slowdown this week, with most bulk bookings concluded previously. In addition, the upcoming National Day holidays (30 November to 3 December 2024) are further dampening market activity in the region.

While, Indian mills are not actively offering in the ME region, last heard HRC export offers from India were around $560/t CFR UAE.

2. HRC offers to EU stable w-o-w: India's HRC export offers to Europe (S275, 3mm) continued to remain stable at $590-595/t CFR Antwerp ($540-545/t FOB, east coast India). India utilized a mere 8% of its allocated HRC quota for Europe, with only 30,102 tonnes(t) used out of 361,075 t as of 22 November. In addition, European HRC prices remained stable w-o-w amid muted trading, with uncertainty about the chances of a price rebound in the first quarter of 2025.

3. Chinese offers to Vietnam w-o-w: China's HRC (SAE1006) export offers to Vietnam remained stable w-o-w to $510-515/t CFR Ho Chi Minh City (HCMC). Market participants are more focused in the domestic market as major mills in the region has cut it HRC prices recently. In addition, China's Shanghai Futures Exchange (SHFE) HRC prices remined stable w-o-w to RMB 3475/t ($479/t).

Outlook

The global HRC market is expected to remain subdued in the short term due to weak demand, upcoming Middle Eastern holidays and Chinese competition. The European market faces additional challenges from trade restrictions. The global steel market's outlook hinges on economic recovery, geopolitical tensions, and government policy changes.