Indian hot rolled coil suppliers have bounced back to take advantage of higher prices in the EU market. After a shipment at the end of November, producers changed their offers, expecting extra business for ineffective capacities. Currently, the local market is expected to keep subdued until January.
At the end of last month, an Indian producer was reported to have agreed a deal for S235 grade HRC at $630-635/ton and $45-50/t freight to the EU for December shipment. However, after this deal, mills raised prices to $640-650/t FOB.
There has been considerable rumors of HRC import tonnages heading to India in recent weeks and it remains unclear how this will affect the market. Opinions are divided, according to the source. One trader said that producers are keeping domestic prices low to limit the competitiveness of imports. Another trader points out that the expected tonnage is a small part of total consumption.
The source said that while prices are falling according to the figures announced by the factories, raw material costs remain high and factories are trying to cover their losses with dollar-denominated sales. The source emphasizes that this situation is also used for raw material purchases.
Chinese HRC suppliers still dominate in the Gulf Cooperation Council. A trader noted that Chinese offers in the GCC (Gulf Cooperation Council) are at cost levels for Indian producers. Export offers for DC01 grade cold rolled coil from India are at $715-720/t FOB India.
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