Ex-India hot dip galvanized (HDG) coil prices have continued to rally higher amid a combination of local factors like tighter supplies of HRC and buyers from the EU marking a strong presence, SteelOrbis learned from trade and industry circle on Thursday, January 26.
Indian mills have started confirming bookings for April shipment with the price range at $880-900/mt FOB, up by $10/mt from a week ago. Several market intermediaries also confirmed a large supply contract touching a price as high as $930/mt FOB for end-of-March shipment, but confirmation of this was not available from mills. The prices at close and above $900/mt FOB are for Z220 coils or so.
A tonnage of 12,000 mt was booked by an eastern Indian mill for April shipment to Europe at $890/mt FOB and another smaller-volume deal for 5,000 mt for Rotterdam was done at $880/mt FOB.
A Gujarat-based flat steel producer reported a trade for 15,000 mt with a Gulf buyer at $875/mt FOB, the lowest realizations for the week heard in the market.
An EU-based trading arm confirmed an ex-India booking at $892/mt FOB, sources said.
“A number of positives are combining to boost HDG exports from the country. Local mills have started April bookings at higher prices, expecting a further tightening of availability of hot rolled coil (HRC) from rising overseas sales. Hence, HDG sellers are keen to secure a higher premium for value addition,” a source at an Indian mill said.
“The EU market is overcoming supply chain challenges from the Russian invasion of Ukraine this year. Energy costs have been reined in. Buyers are reacting positively and this is reflected in rising bookings for April,” he said.
As a result, the reference price for Z120 Indian coils has reached $790-830/mt FOB, up by $20/mt over the past week.