Although HRC export trade from India has remained weak due to the winter holiday lull in Europe and has been absent in other trade destinations for months given the cheaper alternatives from China and other Asian countries available to buyers, according to sources some Indian mills have resumed their offers to the Middle East, resulting in several deals at discounts to this destination.
Specifically, according to sources, around 20,000 mt in total of ex-India SAE1006 HRC are reported to have been booked to the UAE and Oman at $635/mt CFR for end-of-January shipment. Meanwhile, according to sources, this order was booked with an additional discount as most ex-India HRC offers for SAE1006 HRC have been voiced at $640-645/mt CFR Middle East, which translates to around $610-615/mt FOB. “The current ex-India deal prices are in line with ex-China SAE1006 HRC offers in the region and, as far as Chinese suppliers are more bullish, this actually gives a chance for Indian suppliers to boost sales in the Middle East market,” an Indian trader told SteelOrbis.
At the same time, no deals have been voiced to the main trade destination for Indian sellers, to Europe, due to the absence of most buyers amid the winter holidays. The indicative offers for ex-India HRC have been estimated at $660-670/mt FOB, the same as before the holidays.
“We expect more clarity in the EU after January 8 when the market will return to work. For now, sentiments are rather positive in the local EU market and new deals are expected at stable or even higher levels in the next round,” another source said.