Ex-India hot rolled coil (HRC) prices have showed a slight downward bias this week, though the offers have been considered to be “largely irrelevant” as large mills have continued to refrain from submitting offers in view of declining demand in the Middle East and uncertain trade conditions in Europe, combined with multiple cheaper options from competing suppliers, especially those from China.
Sources said that ex-India HRC prices have settled at $560-580/mt FOB, against $560-590/mt FOB last week, but these prices were “not even indicative” as no offers have been submitted by large mills during the entire current month and with more competitive suppliers from China quoting at the $455/mt FOB mark for several Asian and Middle Eastern destinations.
Most agree that Indian sellers are clearly overpriced in Asia and the Middle East, following sharp declines in ex-China prices and current acceptable prices for buyers are economically unviable for local exporters.
It was pointed out that Indian mills have pulled out of Europe even as buyers there have also not been responding to offers, owing to trade uncertainties from antidumping investigations launched in the region into imports from several countries including India and given the traditional summer break in August.
“Following the prolonged global decline, only offers below the $500/mt FOB mark are being considered by buyers across the region. We do not see these prices as viable as per our operational economics. Hence, it is prudent not to be desperate and to protect our economic viability and focus on local sales,” an official at a private mill told SteelOrbis.