Posted on 17 Apr 2024
Indian hot and cold rolled coil export activity to the European market remains subdued this week, amid falling Chinese futures prices. But offers saw a small uptick, due to a rise in domestic HRC prices, sources tell Kallanish.
Domestic values have rebounded amid improving demand for long products, and upcoming mill shutdowns. Market sources note limited Indian-origin HRC offer availability due to the April-June quarter domestic shutdowns of several major Indian steel mills.
Several steelmakers have scheduled their annual maintenance during the period, which traders note will help re-balance demand-supply dynamics. An estimated 300,000-1 million tonnes of product will be removed from the market in this period (see Kallanish passim).
One source says business appetite is down as there is not much scope for exports if exporters are not able to clear goods through EU Customs.
According to EU TARIC data, the EU’s second-quarter safeguard quota for HRC originating from India has a remaining balance of 70,916 tonnes, with 19,000t still awaiting allocation as of 15 April. About 76% of the Q2 allocation of 294,662t has already been exhausted in 15 days.
In the European market, initial India-origin HRC offers were heard at $635-640/t cfr Antwerp, or $580-585/t fob India east coast for S235 grade, for May/June shipment. This is a week-on-week rise of $5/t. No new booked European HRC deals were heard this week.
Southeast Asian mills were heard quoting at around $615-625/t cfr, South Korean mills at $620/t cfr, and Japanese mills at around $600-610/t cfr, with Saudi mills offering at $630-640/t cfr Antwerp.
CRC initial offer prices were heard at $735-740/t cfr Antwerp, or $680-685/t fob India for DC01 grade, May/June shipment. This is a rise of $5-10/t on-week.
Last week, an India-Europe deal was booked at around $740-750/t cfr Antwerp, or $680-690/t fob India, for 30,000-35,000t, with a product mix of DC01 grade and a higher grade, April/May shipment. The shipment will be delivered to various ports including Antwerp, Italy and Spain.
In the Gulf Cooperation Council, initial Indian-origin SAE1006 grade HRC offers were heard at $600-610/t cfr Jebel Ali, or $570-575/t fob India, for May/June delivery. Local GCC buyers re-iterated their unwillingness to pay a premium for early delivery from India due to sufficient stocks as they are comfortable with cheaper product but longer lead times from non-Indian suppliers.
In the Vietnamese market, initial India-origin HRC offers were heard at $565-570/t cfr Ho Chi Minh City, or $530-535/t fob India, for re-rolling SAE1006 grade 2mm+ and tube making grades, April/May shipment.
In early April, an India-Vietnam deal was concluded at $565/t cfr Ho Chi Minh City, two parcels of 30,000t each, for SAE1006 grade 2mm+ thickness, April/May shipment.
One source notes there is low activity in the Vietnamese market as “[Vietnam] is a self-sufficient and a competitive market”.
In Nepal and Bangladesh, offer prices held steady on-week at $575-600/t, delivered up to the Indian border, for HR, CR and tube making grades, April delivery.
In the African market, offers were at the same levels as last week, at $615/t cfr Kenya or $575/t fob India, for 10,000-15,000t, for SAE1006 HRC grade, pipe making ST37/ST400 grade and tube making grades. Similar initial offers were heard for Tanzania and Djibouti.
Source:Kallanish
