Issue 03, 2024 - Indian HRC domestic demand slows and mills look again at export markets

India’s domestic demand for hot and cold rolled coil is expected to soften due to the upcoming general election, meaning mills are looking to export their excess production.

Domestic demand is sluggish, traders say. One source notes: “Because of upcoming elections things are moving slowly,” adding that “NMDC started its mill recently and is offloading into the domestic market; plus, imports are also creating pressure on domestic mills.”

According to market sources, Indian mills are quoting HRC to the European market at $720-725/tonne cfr Europe, equating to $650-660/t fob India, for S235 grade for February-to-mid-March shipment. This has risen from $700-705/t cfr Europe last week.

Meanwhile, bids from European buyers are in a similar price band of $720-725/t cfr, or $650-660/t fob India. Another trader says downstream players should see export deals for products such as galvanised, pre-painted and cold rolled coil “due to better demand from the EU”.

A source notes there is restocking demand in the EU, adding that “Indian prices are attractive for importers because of [rising] benchmark region prices.”