The downtrend in the Middle East HRC market continues due to China's aggressive pricing policy. However, global economic uncertainties, geopolitical developments and fluctuations in supply-demand dynamics make the market vulnerable.
Indian exporters may have to reconsider their strategies to remain competitive in the market while maintaining their prices.
China's hot rolled coil (HRC) export offers to the Middle East fell by USD 10 from last week to USD 520-525/ton CFR. This was mainly driven by the fact that a shipment of around 60,000 tonnes was agreed at USD520-525/ton CFR for delivery by the end of December 2024.
On China's Shanghai Futures Exchange (SHFE), HRC prices decreased by RMB32/ton (USD4/ton) from last week to RMB3,487/ton (USD481/ton). However, on a daily basis, HRC prices were 12 RMB/ton (2 USD/ton) higher from 3,475 RMB/ton (480 USD/ton) on 19 November.
India's HRC offers for the Middle East remained steady at USD 560/ton CFR. However, China's falling prices are having a negative impact on India's competitiveness in this market. For these reasons, Indian exporters may have to reconsider their strategies to remain competitive in the market while maintaining their prices.
HRC offers from Taiwan hovered around USD540/tonne CFR this week, while Japan's offers were in the USD535-540/tonne CFR range. A deal of around 40,000 tonnes from Taiwan was finalised at around USD 540/tonne CFR with delivery by the end of December 2024.
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