Indian steel export offers reemerge in EU after over a month's pause
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Indian mills had temporarily halted export offers due to limited export allocations and higher domestic realisation. However, in a recent development heard, a few offers of Indian origin hot rolled coils (HRC), cold rolled coils (CRC), and hot-dip galvanised iron (HDGI) have been heard in European Union (EU).
Current price indications:
1.Indian HRC (S275, 3mm) export price indications to EU are around $670/t CFR Antwerp this week against $630/t CFR Antwerp in late April 2024.
2.CRC export offers from India to EU are hovering around $750-755/t CFR Antwerp ($700-705/t FOB east-coast India), last heard offers in mid-May were also at similar price levels.
3.Export offers of HDGI coils (0.50mm, 900-1,250mm) from India is around $850/t CFR west coast ($800/t FOB west-coast India), against $830/t CFR west coast India.
However, no firm deals were heard concluded as buyers are in a wait-and-watch mode.
Key factors influencing market sentiments
Indian steel mills underwent planned maintenance shutdowns in May 2024, leading to production cuts. Post which mills increased their domestic prices. However, domestic market demand is slow with limited trade activities. In addition, the general elections held in India also kept market sentiments sluggish.
In the European market, mills increased its HRC prices, despite low end-user demand, on expectations that imports will be limited due to safeguard measures.
The European Commission (EC) is taking stricter action on imports of hot-rolled flat products (HRF). This follows a recent surge in imports, particularly from new origins, which has destabilised the market. To address this imbalance and ensure the safeguard measures remain effective, the EC has implemented a new policy on 30 May 2024 . A 15% cap will be placed on the amount any single country can export under the residual HRF quota each quarter.
Outlook
Indian mills have resumed export offers after addressing domestic needs, with offers at slightly higher prices compared to April. While price hikes by European mills could create an opportunity for Indian steelmakers in the short term if EU buyers started to restock. However, the safeguard measures may change market sentiments in the region.
