Indian hot and cold rolled coil (HRC/CRC) export activity to Europe remains subdued due to sluggish demand in the region. Sources indicate that Indian mills are holding back from making new offers to the European market for the second consecutive week.
A market source states that the European market is "slow," prompting Indian mills to refrain from providing fresh offers. Major Indian steelmakers like JSW Steel and ArcelorMittal Nippon Steel (AMNS) India are reportedly undergoing maintenance shutdowns, further limiting their export availability.
The lackluster demand in Europe is attributed to various factors, including high inventories and concerns over the European Union's (EU) safeguard quota system. Indian-origin HRC had around 310,660 tonnes of the first-quarter EU safeguard quota remaining unused as of late February, according to EU TARIC data.
Earlier in the year, Indian HRC offers to Europe were heard in the range of $690-700/tonne cfr (or $630-640/tonne fob India) for SAE1006/S235 structural grades, while CRC offers were around $790/tonne cfr (or $730-740/tonne fob India). However, these prices have since dropped by $10/tonne on a weekly basis due to the prevailing market conditions.
Some market participants anticipate Indian offers to the European market to decline further by $10-15/tonne in the coming weeks, reflecting the ongoing challenges in securing export orders.
