Indian mills raise HRC offers despite low demand
Posted on 14 October 2021
Indian hot rolled coil export offers have increased marginally on a cost-push from rising raw materials prices. Demand, however, remains low and global sentiment bearish.
Indian-origin 2mm+ SAE grade HRC trader offers to Vietnam increased marginally on-week to $910-920/tonne cfr Ho Chi Minh City. However, buyers’ expectations are low on weak demand and cheap offers from Russian mills, noted at $860-870/t cfr. No deal for India-origin HRC was heard in Vietnam this week. However, in the hope of a deal-closure, some Indian mills were also heard offering HRC at $890/t cfr Ho Chi Minh City, Kallanish notes.
“Mills are trying to increase their offers on the cost push but buyers are muted. Some sellers are heard offering below $890/t cfr Vietnam but they are unable to attract buyers owing to low demand,” says a senior trader active in ASEAN. “The domestic [Indian] market is rising and mills are shifting their preferences to the domestic market over exports, which is why they have increased their export offers as well.”
Indian mills are offering to United Arab Emirates and neighbouring countries at $905-910/t cfr Jebel Ali, with traders' offers heard at $915-920/t cfr Jebel Ali. For big quantities, Indian mills are ready to decrease offers below $900/t cfr Jebel Ali. Indian mills were heard concluding a deal for 10,000-15,000 tonnes of HRC at $915-920/t cfr Oman.
“The Middle Eastern market has become divergent,” says a senior Indian trader active in the region. “Owing to a short-term hike in the domestic market and cost-push, Indian mills are seen hiking their offers. But we don’t expect the hike to survive long, as the international market is seen falling. China is down, CIS has reduced their offers … all of it indicates a serious fall in the global market.”
EU buying is muted after the December-quarter quota for Indian HRC was quickly exhausted. Indian mills were offering HRC at $990-1,000/t cfr EU last week. No new enquiries have been reported.
“Sentiments are the same … quota exhausted, and excess cargo in the anchorage at EU ports,” says a trader active in Europe. “No European buyer is heard enquiring about HRC from India. We expect more selling, once the cargoes are cleared through EU ports.Source : Kallanish