The export quotation of hot rolled coil fell due to weak market sentiment

Issuing time:2022-05-02 10:54

Despite the decline in the export quotation of hot rolled coils from Indian steel mills, buyers in the EU and GCC regions have very limited interest in buying. The source told kallanish (Kailan business information consulting) that India's initial export quotation did not receive a counter-offer from the buyer, and the buyer is waiting for the quotation to decline further.

The initial offer for Northern Europe decreased by US $30 / T from the previous week to US $1130-1150 / T CFR Antwerp, equivalent to US $1010-1020 / T FOB India, depending on the factory and port of origin. The bulk quotation for southern Europe is US $1100-1115 / ton CFR Italy. This week, the quotation of structural grade hot rolled coil of Indian steel plant to southern Europe is US $1113 / ton CFR Italy. However, for the buyer's firm offer, the steel plant is willing to accept the price of US $1050-1080 / ton CFR Italy.

The export quotation of Indian hot rolled coil to Turkey has been reduced to USD 1010-1020 / ton CFR Turkey. Last week, an Indian steel mill offered to sell a batch of re rolled goods at the price of US $1005-1010 / ton CFR Turkey, but no deal was reached.

A trader active in Europe said: "European buyers are on the sidelines. They have recently ordered a large number of semi-finished products and plates; therefore, their demand for hot-rolled coils has been met temporarily. Once the price of hot-rolled coils returns to normal, they may resume their reservation for the next quarter."

Indian steel mills have reduced their offer of re rolling grade hot rolled coil by US $20-30 / ton to US $960-980 / ton CFR GCC to compete with the low offer of competitors. No deal was heard in the UAE this week. India is still reluctant to provide Vietnam with hot-rolled coils.

At the same time, the domestic quotation of E250 hot rolled coil in India plummeted to INR 73000-73500 / ton (USD 952 / ton), and the ex factory price in Mumbai. However, the quotation of e350 and galvanized sheet increased to INR 75000-75500 / ton and INR 85000-85500 / ton respectively, and the ex factory price in Mumbai.

It is expected that India will further reduce its export quotation to conclude the transaction because it does not receive demand support in the domestic market. All domestic consumers - OEMs and retail buyers - are reluctant to buy too many products to maintain inventory. End users buy only the amount they need to carry out their business.

Meanwhile, steel mills are still considering price increases due to the increased cost of coking coal

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