MMi Daily Iron Ore Report (May 22)

Indian HRC offers for Europe rose by 40–50USD/tonne week on week to around 640USD/tonne FOB India, while North European indications increased by 20–30USD/tonne to 715–730USD/tonne CFR. However, export sales remained subdued, with no fresh transactions confirmed as importers assessed quota availability and customs-clearance timing. The latest EU data reviewed by SMM showed the relevant India HRC quota at 98% utilisation, with 2,991tonnes remaining. The India–EU FTA would raise India’s total annual steel access to around 1.64million tonnes, but the additional 694,853tonne preferential allocation will become available only after the agreement enters into force and therefore does not ease current clearance constraints. Out-of-quota volumes remain exposed to a 50% tariff. Europe-bound Indian cargoes were understood to be targeting the next quota window, although clearance is not guaranteed. The 75–90USD/tonne CFR–FOB difference primarily reflected freight and logistics rather than additional mill realisation. In Southeast Asia, Vietnamese domestic HRC was heard around 540USD/tonne, with India–SEA freight at 20–25USD/tonne, but no fresh Indian sale was confirmed. Indian billet export indications fell by 15–20USD/tonne to around 470USD/tonne FOB India, with buyers procuring selectively. Domestic HRC was heard at 625–631USD/tonne (60,000–60,500INR/tonne) EXW Mumbai and 667USD/tonne (64,000INR/tonne) ex-yard Mumbai, excluding GST. On a comparable EXW basis, the lower end was unchanged week on week, while the upper end fell by 1,500INR/tonne.