Indian mills have increased export offers for hot rolled coil on the back of higher demand and prices in the domestic market. Global demand, however, remains low and the market is witnessing a gap between sellers’ offers and buyers’ expectations.

Indian-origin 2mm+ SAE grade HRC mill offers to Vietnam are noted at $910-920/tonne cfr Ho Chi Minh City. However, traders’ offers are reported at $890-900/t cfr. Buyers’ expectations are low, on weak demand and cheap offers from other countries, at $870-880/t cfr. No deal for India-origin HRC was heard in Vietnam this week.

Indian mills are offering 2mm+ SAE grade HRC at $860-870/t fob Indian east coast, and freight to Vietnam in the spot market is noted at $55-60/t, Kallanish notes.

“Demand is still low; buyers are hesitant to book any quantity at high prices from India right now,” says a senior trader active in ASEAN. “Indian mills have stopped floating offers in the market and are focusing more on the domestic market over exports. Offers in the domestic market are noted at INR 68,000-69,000/t ($908-922/t) ex-works, owing to which mills expect high offers from the global market also. Domestic stockists have commenced restocking of HRC and are offering it at INR 71,000/t for November deliveries.”

“Many traders and buyers are witnessing a banking credit limit crunch owing to the hike in steel prices. Traders are no longer able to book large quantities with the same credit limit offered by the banks as they were able to book before. It has also impacted purchasing and deals in the market,” he adds.

Offers to United Arab Emirates and neighbouring countries increased marginally on Monday, by $10-15/t on-week to $915-920/t cfr Jebel Ali for December shipments. An Indian mill was heard concluding a deal for 10,000 tonnes of HRC at $908-910/t cfr Jebel Ali on Sunday. Indian mills are offering 2mm+ SAE grade HRC at $865-870/t fob Indian west coast and spot freight to UAE is noted at $50-65/t.

“Indian mills are seen pushing HRC offers in the Middle Eastern market,” says a senior trader active in Dubai. “However, buyers’ expectations are low on the back of low offers from other origins. The push in the offers by mills has created a gap between offers and expectations of the buyers, which might be beneficial for other origins.”

Owing to the exhausted EU quota, Indian mills have lowered their offers to $980-990/t cfr Europe. However, European buyers are heard bidding for HRC at $910-920/t cfr Europe. Spot market freight to Europe from India is noted at $80-90/t.

“Brazilian, Turkish and even Vietnamese traders are actively offering and selling HRC in Europe now,” says a trader active in the region. “India is out now due to its exhausted quota. Buyers are heard asking for HRC at a very low price owing to the additional 25% duties on post-quota imports.”