Indian CRC export offers to EU drop $10/t w-o-w on muted trading
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Indian CRC export offers to Europe (EU) fell by $10/t w-o-w to $740-745/t CFR ($690-700/t FOB east coast India). Despite a significant drop in prices, buying activity remained subdued due to the Holi festival in India. Sources report that many buyers are delaying inventory restocking in Europe.
Factors influencing prices
Decline in global CRC offers: Chinese CRC export offers declined by $5/t w-o-w to $620/t FOB this week against $625/t FOB previous week, following the fall in SHFE (Shanghai Futures Exchange) HRC futures this week.
Chinese SHFE HRC futures fell by RMB 103/t ($14/t) w-o-w to RMB 3,699/t ($512/t) on 28 March against RMB 3,802/t ($526/t) on 21 March. Moreover, futures edged down by RMB 44/t ($6/t) against RMB 3,743/t ($518/t) on 27 March.
Slow trade activities in Europe: European steel prices are sinking further as buyers stay on the sidelines. The upcoming Easter holidays in Europe is inducing a wait-and-see approach among market participants, with many sources saying prices may soften further in the near term. This cautious stance is leading to thin trading and a slowdown in imports.
However, Indian HRC export prices for Europe (S275, 3mm) remained range-bound this week at around $640-650/t CFR Antwerp ($590-600/t FOB east coast India).
Outlook: Market sentiments remains mixed with prices dropping due to weak global demand amid holidays. However, a rebound might occur after the holidays, but this hinges on a recovery in European steel demand. Indian exports, however, are likely to remain stable.