Indian mills withhold HRC export offers w-o-w amid weak global demand
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Indian hot-rolled coil (HRC) exports remained silent, mills have continued to hold their export offers to Southeast Asia and the Middle East amid competitive offers from other key origins. Moreover, the ongoing geopolitical issues in the Middle East region keeps global market sentiments sluggish. Furthermore, Indian HRC export offers to Europe remained stable w-o-w, with no firm deals reported due to ongoing anti-dumping investigations.
1. HRC offers to EU stable w-o-w: India's HRC export offers to Europe (S275, 3mm) remained stable w-o-w at $600-605/t CFR Antwerp ($555-560/t FOB, east coast India). European buyers' interest in imports still remained weak due to concerns around safeguard duties and anti-dumping (AD) investigations. An EU-based source said: "Buyers are reluctant to trade for October shipment from India because of AD investigation risk. In addition, domestic prices of European HRC remained largely stable as buying activity remained limited in the market due to low end-user demand."
2.HRC offers to ME remain range-bound w-o-w: China's HRC (Grade: S235 and S275) export offers to the Middle East (ME) remained range-bound for the week with offers hovering around $490-500/t CFR UAE, offers being range-bound, trade activities for Chinese HRC in the ME remained limited, suggesting weak demand. Moreover, imported HRC offers from Japan to ME stood at $490/t CFR UAE. A deal of around 25,000 tonnes (t) has been heard concluded for November shipments. However, Indian mills have continued to hold their HRC export offers to the ME.
3.Offers to Vietnam remain flat w-o-w: China's HRC (SAE1006) export offers to Vietnam remained flat for the week. Offers are in the range of $470-475/t CFR HCMC. Meanwhile, Chinese Shanghai Futures Exchange (SHFE) HRC futures increased by RMB 45/t ($6/t) d-o-d to RMB 3,235/t ($460/t) against RMB 3,190/t ($454/t) a day ago. Moreover, on w-o-w basis the same edged up by RMB 19/t ($3/t) as compared to RMB 3,216/t ($457/t) on 18 September. The upcoming Golden Week holidays in China from 1-7 October has improved domestic HRC demand in China, potentially leading to increasing prices and reduced export offers.
Outlook
The ongoing anti-dumping investigations against Indian HRC in Europe, coupled with geopolitical tensions in the Middle East and other regions, are likely to create significant challenges for Indian exporters in maintaining their market share in the global steel market.