Indian mills resume CRC export offers to Europe

Indian mills have resumed CRC export offers to the Europe Union (EU) as prices rose by $15-20/t, with offers hovering around $750-760/t CFR Antwerp ($700-710/t FOB east-coast India) against $735-740/t CFR Antwerp two weeks ago. However, no major deal was heard concluded as European buyers are in a wait-and-watch mode. In addition, offers from South Korea for CRC are very competitive, informed a source.

Global market sentiments: Chinese CRC export offers have remained unchanged for the week at $625/t FOB post Labour Day holidays. Moreover, HRC offers on the Shanghai Futures Exchange (SHFE) were volatile. Futures, rose by RMB 16/t ($2/t) to RMB 3,834/t ($530/t) w-o-w against RMB 3,818/t ($528/t) on 30 April. The same inched down by RMB 37/t ($5/t) d-o-d against RMB 3,871/t ($536/t). Market participants have just returned after holidays, keeping prices stable amid volatile futures.

Europe's market scenario: In the European Union (EU) domestic HRC prices increased slightly as buyers have started to restock. Moreover, in the absence of competitive import offers, EU mills may raise steel prices in the near term. However, demand has still not fully improved, sources informed BigMint.

Indian steel mills continued to hold their HRC export offers (S275, 3mm) to Europe this week as well. However, mills are expected to start offering this week for June-July shipments, hinted sources.

Outlook:

Indian mills have resumed CRC export offers; however, no firm offers were seen for HRC as mills are prioritising sales in the domestic market. Market participants indicate mills may resume offers for HRC next week. European mills are also trying to increase prices due to improvement in market sentiments.