Indian hot rolled coil export prices to Europe slipped by $5-10/tonne, week-on-week, for the second consecutive week, while cold rolled coil and other flat steel prices remained stable, Kallanish learns from sources.
Sources note the dip was mainly driven by the European Commission’s recent proposal to cut quotas and double steel tariffs. As well as the continuing uncertainty over the Carbon Border Adjustment Mechanism (CBAM) methodology.
In early-October, the EC proposed reducing tariff-free imports by 47% to 18.3 million tonnes/year, raising the out-of-quota duty from 25% to 50% and introducing a “melt and pour” origin rule. The current safeguard system is set to expire in June 2026 (see Kallanish passim).
Indian exporters remain cautious and have adopted a “wait-and-watch” strategy as they await further clarity on country-specific quota allocations in the newly proposed safeguard quota system.
Engineering goods exporters have also urged the Indian government to seek concessions on the proposed quota system in the ongoing India-EU free trade agreement negotiations, sources add.
As of Tuesday, Indian-origin HRC offers were down $5-10/t on-week to $595-600/t cfr Antwerp, or $535-540/t fob Mumbai, for S235 grade, November/December shipment.
According to EU Taric data compiled by Eurometal, India’s October-December HRC (category 1A) quota had 85% availability with 193,000 tonnes unutilised and 100t awaiting allocation as of 13 October.
CRC offers were steady w-o-w at $735-740/t cfr Antwerp, or $675-680/t fob Mumbai. The EU’s CRC (category 2) quota was 98% available with 161,800t unutilised.
HR plate offers were also unchanged on-week at $710-715/t cfr Antwerp, or $650-655/t fob Mumbai, for S275/S235 grades.
Hot-dipped galvanised coil offers also held steady at $785-800/t cfr Antwerp, or $725-740/t fob Mumbai, for 1mm Z275/DX51 grades, while pre-painted galvanised coils carried a $200/t premium over HDG for 0.5mm Z140 grade.
Metal coated (category 4A) was 94% available with 50,900t unutilised.
While category 4B was 97% available. Organic coated (category 5) quota was already exhausted as of 13 October.
In Vietnam, India-origin HRC offers were heard at $508-510/t cfr Ho Chi Minh City, or $496-498/t fob Mumbai, for SAE1006 base grades, November/December shipment. Freight from India to Vietnam ports is estimated at $10-15/t.
In the Gulf Cooperation Council, India-origin HRC offers were heard at $515-518/t cfr GCC ports, or $498-501/t fob Mumbai, for November shipment. Freight to GCC ports is estimated at $15-20/t.
Suhita Poddar India
