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Indian HRC exports remain sluggish amid weak global market sentiments

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BigMint Bureau

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3 Dec 2024, 19:04 IST

Indian HRC exports remain sluggish amid weak global market sentiments

Indian steel HRC exports remained sluggish amid weaker global market sentiments. Indian mills are not actively offering to the Middle East (ME) as market participants in the ME are on National Day holidays, while cheaper alternatives from China still are entering the market. Moreover, the European market also remained silent, with market participants in the region adopting a wait-and-watch attitude amid trade restrictions.

Market updates

1. ME market sluggish due to holidays: China's HRC export prices to the Middle East (ME) continued to remain stable for the week at around $525/t CFR UAE. Trading activities in the Middle East HRC market remained sluggish due to the ongoing National Day holidays (30 November to 3 December 2024). "Market participants are expected to return from the holidays tomorrow," sources informed BigMint.

India's indicative HRC offers to the ME are hovering around $545-550/t CFR UAE against $550-560/t CFR UAE heard previously.

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). In addition, domestic European HRC market sentiments remained relatively stable due to a lack of restocking activity. Additionally, trade restrictions and longer lead times have resulted in subdued trading activity in the imported HRC market.

3. Chinese offers to Vietnam range-bound w-o-w: China's HRC (SAE1006) export offers to Vietnam remained range-bound w-o-w at $505-510/t CFR Ho Chi Minh City (HCMC). In addition, Vietnam's leading industrial manufacturing group, Hoa Phat Group, has cut its monthly HRC prices by around $12/t for February-March 2025 shipments, sources informed. Post revision, the price for the southern region is approximately $525/t (VND 13,370,000/t), excluding VAT. This price reduction comes amid weakening domestic demand and rising imports from China.

Outlook

The global HRC market is expected to remain subdued in the short term, with limited activity due to the recent holidays in the Middle East. While Indian mills are maintaining stable export offers, the competitive pressure from Chinese producers and sluggish demand in key markets could further impact export volumes.