While most ex-India hot rolled coil (HRC) prices have remained stable in the majority of trade destinations, mainly amid negligible trade activity, export offers to Europe have indicated a slight increase this week.
Sources said that ex-India HRC prices have increased to $560-610/mt FOB compared to $560-600/mt FOB a week ago, while a greater number of mills are heard to be submitting offers to the EU. More specifically, while the lower end of the range still corresponds to indicative offers in Asia and the Middle East at $560-580/mt FOB, Indian HRC offers to Europe have increased to $660-665/mt CFR southern Europe and to $670/mt CFR Antwerp, up by $10-20/mt over past weeks, which translates to around $610/mt FOB. According to market insiders, a deal for 8,000 mt for delivery to Antwerp has been heard at $670/mt CFR while another Indian supplier has concluded a trade for 12,000 mt for delivery to Portugal at $655/mt CFR.
According to sources, one more trade for 10,000 mt has been heard in Qatar and, though the price has not been officially disclosed, it was heard in trade circles to be in the range of $575-585/mt FOB. Meanwhile, no firm offers have been heard for ex-India HRC in the UAE this week.
“Domestic mills had temporarily halted exports largely because of higher realizations from domestic sales and tighter supplies. However, this may change as more mills are coming back into production,” an official at a private steel company told SteelOrbis.
“In the short term, import restocking is seen to be reviving with mills in Europe attempting to increase prices. But our thinking is that this will be short-lived as the European Commission will take actions against flat product imports through stiffer safeguard duties. The 15 percent cap on steel imports from a single country in one quarter, put into effect last month, will limit export opportunities in the EU going forward,” another source said.