Indian hot rolled coil producers are seen dropping their offers; however, mills are not receiving any firm bids from European customers. Buyers there are instead panicking over sliding prices, including domestic European values. Sentiment points to a HRC price crash, meaning buyers have stopped floating enquires to Indian mills, various sources tell Kallanish.

Despite limited enquires, initial Indian mill offers to northern Europe are still noted at $1,130-1,150/tonne cfr Antwerp, equating to $1,010-1,020/t fob India, depending on mill and port of origin. Bulk-quantity quotes to southern Europe are heard at $1,070-1,080/t cfr Italy, equating to $960-970/t fob Indian west coast. An Indian mill was heard offering structural grade HRC to northern Europe this week at $1,150/t cfr Antwerp. However, mills are seen interested in booking HRC at below $1,100/t cfr Antwerp on firm bids from buyers.

Indian HRC export offers to Turkey have dropped to $950-970/t cfr Turkey. An Indian mill was heard offering a re-rolling grade cargo at $950/t cfr Turkey last week; however, the offer did not receive a firm counter bid from the buyer. As per sources, Turkish price expectations are heard at far below the Indian initial offers.

“Indian mills are hesitant to drop their initial offers to avoid showing desperation; however, they are ready to sell the cargoes at a far lower price. Nevertheless, mills are still not receiving any firm enquires,” opines a senior trading source.

Owing to the Eid holidays, no offers were made to the Gulf Cooperation Council, while India is still refraining from offering HRC to Vietnam.

Indian E250 grade HRC domestic quotes are noted at INR 72,500-73,000/t ($950) ex-Mumbai. Offers for E350 and galvanized plain sheet however hiked to INR 74,500-75,000/t and INR 84,500-85,000/t ex-Mumbai, respectively.

The rupee has appreciated by almost 0.33 per dollar in a week, hitting mills’ gross export realisations. Indian mills will therefore be reluctant to lower their offers. However, considering the prevailing downward buying sentiment in Europe, coupled with limited enquiries from the GCC and Turkey, suppliers will have to reduce quotes further in the coming days to secure bookings.

Buyers are also waiting for China to return from its Labour Day holiday on Thursday before taking any firm decisions on HRC bookings.