Ex-India hot rolled coil (HRC) prices have been kept mainly stable this week, while after a prolonged break large Indian mills have resumed submitting offers to Europe, anticipating some revival in trade restocking, but also due to the pressure from higher supplies in their domestic market. However, deals have remained unconfirmed as buyers are cautious with the summer approaching and as demand from end-users is still weak.
Sources said that, while ex-India HRC prices are officially stable at $560-610/mt FOB, at least several mills have confirmed submitting offers to Europe at the higher end of the range of $600-610/mt FOB, that works out at around $655-670/mt CFR Antwerp, but the mills declined to confirm if the offers were converted into deals. “European buyers’ prices idea is at around $630/mt CFR, which is too low for Indian mills,” an Indian trader told SteelOrbis.
“With excess supplies putting pressure on prices amid weakening demand in the local market, mills are more active in submitting offers to export markets, including Europe. But it’s still wait and watch for deals to work out, considering the lean summer season in the EU and that distributors are comfortably stocked,” a source at Tata Steel Limited said.
“Our assessment is that buying in Europe and the Middle East will improve but only at very competitive prices. Indian mills are hoping that some price stability in Europe will ultimately lead to improved interest in imports,” another source told SteelOrbis.