Indian hot rolled coil export offers have fallen some $20-30/tonne on-week, on low demand amid a drop in global iron ore prices.

The Kallanish KORE 62% Fe index fell to $99.31/dry metric tonne cfr Qingdao on Tuesday, although it rebounded to $104.38/dmt on Wednesday. With sentiment descending, offers from Indian suppliers – mills and traders – are not matching the expectations of buyers, owing to which buyers have adopted a wait-and-watch mode.

“The market is falling, and no one wants to take the risk in buying HRC in these conditions,” says a senior Indian trader active in the Middle East. “Iron ore, scrap, and other raw material prices are falling and, upon that, lockdowns have diminished demand in many ASEAN countries. Middle East sentiment is down too, as they have reduced stocks. Mills have brought down their offers, but buyers are still hesitant.”

Indian-origin 2mm+ SAE grade HRC offers to Vietnam are at $890-900/t cfr Ho Chi Minh City. However, for some other Southeast Asian countries, Indian mills are offering at $920-940/t cfr.

A deal for 60,000 tonnes of 2mm+ SAE grade HRC was heard last week at $890/t cfr Ho Chi Minh City for November delivery. South Korea meanwhile bought 15,000t of SAE 2mm+ HRC from India at $920-930/t cfr for November delivery. This week, Malaysia has booked Indian-origin HRC at $940/t cfr.

“Demand is low and, upon that, falling iron ore prices have further weakened the dynamic. We don’t see any hike in demand in the coming few weeks,” says a senior trader active in ASEAN. Quotes to Vietnam are typically lower than to neighbouring countries. “Vietnam buys in bulk quantity and calls for the bulk vessel; however, other Southeast Asian nations buy in limited quantity, owing to which their offers are on the higher side as compared to Vietnam,” he adds.

“Last week, a few Indian state-run mills were offering HRC at $830-840/t fob India, but now that price is not workable,” the trader concludes.

Offers to United Arab Emirates and neighbouring countries are noted at $940-950/t cfr Jebel Ali; however, buyers’ expectations stand at $900-920/t cfr. India’s EU safeguard quota for HRC has been exhausted for the October-December quarter. Price indications are nevertheless at $1,010/t cfr Europe, excluding 25% safeguard duty.

“The quota for the December-ending quarter has already been exhausted for HRC. Bookings for the quarter commencing in January will begin in October,” says a trader active in Europe.

Turkish mills have meanwhile booked India-origin 2mm+ SAE grade HRC at $880-890/t cfr Turkey.