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, sources tell Kallanish.

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.”

Steelmakers opine that due to increasing freight rates, Indian mills are being supported by the Middle East and Vietnam markets. A source says: “Since India is much nearer [to the EU] than other [Asian] manufacturers, even if freight rates continue increasing, our [Indian] prices will still be attractive to EU buyers.”

Indian mills have not registered much change in their offer prices to the Gulf Cooperation Council since last week. These stand at $635-640/t cfr Jebel Ali or $610-615/t fob India for SAE1006 grade of 2mm and above thickness, traders note.

One trader reported an Indian major booked to the Middle East region at $630-640/t cfr, or $610-615/t fob, for 20,000 tonnes of pipemaking structural grade for February shipment. This was not confirmed before deadline.

In the Indian domestic market, E250 grade HRC offers are heard at INR 55,000/t ($662) ex-Mumbai. Bidding prices meanwhile stand at INR 55,000-55,500/t, according to traders.

"Consumption is off due to general elections, which is hampering prices,” a local source informs. Traders predict domestic prices will fall to INR 53,000/t in the next two months.