Indian HDG export offers consolidate at higher levels

Indian hot dip galvanized (HDG) coil offers to the US have consolidated at higher levels of $895/mt CFR with exporters successfully pushing through transactions in the past week, especially from US buyers, while there has been a renewal of enquiries from the European Union region, traders said on Monday, February 4.
 
"US buyers, after some hesitancy in earlier weeks concluded transactions for late April shipments. But the surprise for the market was the renewed interest from EU buyers who had been absent from Indian markets for several months," a Mumbai-based trader-exporter said.
 
"According to reports in the market, buyers from southern Europe were particularly active in inquiries for local HDG coils. My own feeling is that Chinese exporters are getting heavily booked for April shipments and this is diverting buyers to the Indian market," the trader said.
 
Market sources said that Indian HDG exporters may continue to push for higher prices over the next few weeks, considering that local HRC prices are forecast to be increased by steel mills and that the steadily appreciating rupee is eroding rupee earnings from dollar realizations.
 
"Higher input costs of Indians steel mills combined with lower realizations from export earnings are just right for HDG export offer to breach $900/mt CFR to the US. The only condition being whether the Chinese export market will get tighter or whether mills in that country will be able to increase volumes on offer for exports," a Kolkata-based trader said.