Indonesian HRC Prices Rise as Dexin Steel Capitalizes on EU Quota Exemption
[tintuc]
Indonesia’s Dexin Steel has recently secured lucrative hot-rolled coil (HRC) export deals to Europe, taking advantage of its exemption from EU safeguard quotas, according to Kallanish. The mill achieved a notably higher export price compared to prevailing rates in ASEAN markets, underscoring the benefits of unrestricted access to the European market.
Dexin Steel reportedly sold 10,000 tonnes of 3mm base thickness SAE1006/SS400 HRC to Gdansk, Poland, at $510/tonne FOB, with freight costs estimated at $73/t. Additionally, the mill dispatched 30,000 tonnes to Italy at the same $510/t FOB rate, with both shipments scheduled for June. Following these transactions, Dexin raised its offer price for 3mm HRC to $520/t FOB, reflecting growing confidence in its export strategy.
“Prices have surged, particularly for exports to Europe, thanks to the absence of quota restrictions on Indonesian-origin material,” a Jakarta-based trader remarked. He added that another Indonesian mill is quoting HRC at $540/t FOB from Cigading, signaling a broader uptick in export pricing. A trader in Manila described Dexin’s $510/t FOB sale as a “fantastic price,” noting that Chinese HRC offers in the region remain at $480/t CFR. Similarly, a Hanoi trader commented, “It’s a strong price; they couldn’t fetch $500/t FOB in Asia.”
Market observers link Dexin’s successful EU sales to a sharp increase in its slab export prices last week. Between Tuesday and Friday, the mill hiked its June-shipment slab price by $40/t in total, reaching $475/t FOB by Friday, bolstering its HRC pricing power. The EU quota exemption has allowed Indonesian producers like Dexin to tap into higher-value markets, bypassing the competitive pressures of Asia.
In contrast, Vietnam’s HRC market remains sluggish, with import deals proving elusive amid tepid demand. A Vietnamese reroller noted that both domestic and export demand for coated steel are weak, though the domestic market shows slight improvement. Traders continue to offer Dexin’s HRC at $510/t CFR Vietnam, while Japanese and South Korean SAE1006 2-3mm HRC (with 30-50% 2mm thickness) is priced at $530/t CFR. However, bids in Vietnam are lagging at $500-505/t CFR, according to another trader. Kallanish assessed SAE-grade 2-2.7mm HRC at $500-505/t CFR Vietnam, unchanged from the prior week.
The continued EU quota exemption is proving a boon for Indonesian HRC exporters, enabling them to secure premium prices in Europe while regional markets like Vietnam grapple with subdued activity.
Indonesia’s Dexin Steel has recently secured lucrative hot-rolled coil (HRC) export deals to Europe, taking advantage of its exemption from EU safeguard quotas, according to Kallanish. The mill achieved a notably higher export price compared to prevailing rates in ASEAN markets, underscoring the benefits of unrestricted access to the European market.
Dexin Steel reportedly sold 10,000 tonnes of 3mm base thickness SAE1006/SS400 HRC to Gdansk, Poland, at $510/tonne FOB, with freight costs estimated at $73/t. Additionally, the mill dispatched 30,000 tonnes to Italy at the same $510/t FOB rate, with both shipments scheduled for June. Following these transactions, Dexin raised its offer price for 3mm HRC to $520/t FOB, reflecting growing confidence in its export strategy.
“Prices have surged, particularly for exports to Europe, thanks to the absence of quota restrictions on Indonesian-origin material,” a Jakarta-based trader remarked. He added that another Indonesian mill is quoting HRC at $540/t FOB from Cigading, signaling a broader uptick in export pricing. A trader in Manila described Dexin’s $510/t FOB sale as a “fantastic price,” noting that Chinese HRC offers in the region remain at $480/t CFR. Similarly, a Hanoi trader commented, “It’s a strong price; they couldn’t fetch $500/t FOB in Asia.”
Market observers link Dexin’s successful EU sales to a sharp increase in its slab export prices last week. Between Tuesday and Friday, the mill hiked its June-shipment slab price by $40/t in total, reaching $475/t FOB by Friday, bolstering its HRC pricing power. The EU quota exemption has allowed Indonesian producers like Dexin to tap into higher-value markets, bypassing the competitive pressures of Asia.
In contrast, Vietnam’s HRC market remains sluggish, with import deals proving elusive amid tepid demand. A Vietnamese reroller noted that both domestic and export demand for coated steel are weak, though the domestic market shows slight improvement. Traders continue to offer Dexin’s HRC at $510/t CFR Vietnam, while Japanese and South Korean SAE1006 2-3mm HRC (with 30-50% 2mm thickness) is priced at $530/t CFR. However, bids in Vietnam are lagging at $500-505/t CFR, according to another trader. Kallanish assessed SAE-grade 2-2.7mm HRC at $500-505/t CFR Vietnam, unchanged from the prior week.
The continued EU quota exemption is proving a boon for Indonesian HRC exporters, enabling them to secure premium prices in Europe while regional markets like Vietnam grapple with subdued activity.
[/tintuc]
