After recently bottoming, Indian mills anticipate a rise in hot rolled coil offers on the back of increased trading activity since late December and the upcoming Chinese New Year holidays, various sources inform Kallanish.

Major Indian mills are indicating offers for SAE 1006 grade 2mm+ HRC at $720-725/tonne fob India.

“Market dynamics are improving and we are seeing a rise in steel buying,” says a senior source at a reputed trading firm. “Prices have already reached the recent bottom and we don’t see a further downfall in the near future. As long as there is buying, the price movement will not impact global trade.”

Major Indian mills have rolled out new 2.5mm+ E250 grade domestic HRC offers for January deliveries. Quotes have been pegged at INR 63,500-64,000/t ($854-860) ex-Mumbai. “Owing to improvement in long steel prices, mills have revised domestic flat steel offers,” informs a domestic trader.

Indian-origin 2mm+ SAE 1006 grade February-delivery HRC offers to Vietnam are noted at $750-760/t cfr Ho Chi Minh City (HCMC). One Indian mill was heard concluding a deal for this specification HRC at $750/t cfr HCMC for February delivery. Freight from India to Vietnam in the spot market is heard to be around $25-30/t.

“Demand in the Southeast Asia market is expected to recover. China is going off for its winter holidays, so a majority of queries for HRC will be directed to India … hopefully,” says a senior trader active in Vietnam.

Indian-origin 2mm+ SAE 1006 grade February-delivery HRC offers to United Arab Emirates and neighbouring countries are stable at $760-770/t cfr Jebel Ali. An Indian mill was heard selling S235 grade for February delivery last week at $765/t cfr Damietta, Egypt. However, no deal was heard for the UAE.

A few Indian mills were heard offering HRC to Europe, after receiving clearance on HRC intake from EU authorities. An Indian mill was heard selling 10,000 tonnes of SAE 1006 grade HRC at $890/t cfr Spain this week. Freight from India to southern European ports in the spot market is heard to be around $65-70/t.

“Indian mills have begun offering HRC to the EU, after getting clearance from authorities. Buyers have become active in enquiring about Indian-origin HRC and closing the deal,” says an Indian trader active in Europe.