Ex-India hot dip galvanized (HDG) coil prices have continue to move north during the past week, riding on shortages and price increases in the EU region, but actual trading volumes have been limited by a combination of year-end consideration of sellers, EU buyers awaiting new quota allocations to kick in, and concerns early in the week over the traffic jam at the Suez Canal, SteelOrbis has learned from trade and industry circles on Thursday, April 1.
Sources said that Indian exporters have attempted to push up HDG offers to around $1,000-1,040/mt FOB. The latest deal prices, mainly to the EU, have been concluded at $1,000-1,010/mt FOB, against the general tradable level of $975-990/mt FOB last week.
“The EU market continues to be marked by shortages and local price increases. However, there is some weakness emerging in the Gulf region and buyers are not committing bookings,” an official at ArcelorMittal Nippon Steel said.
“Ex-China offers are returning to the market, but risks of any possible export rebate cuts are being passed on to buyers, making the latter extremely cautious. These are positive for Indian exporters and the outlook is very robust. But year-end considerations of Indian sellers, and work in progress in setting export allocations for the new quarter, particularly factoring in the variable demand forecast for hot rolled coil (HRC), is keeping trading volumes limited,” he added.
At least two market participants have confirmed the emergence of buying interest for newer African markets including Nigeria and that negotiations are still ongoing between two Indian integrated steel mills and buyers, with actual deals expected to be confirmed early in the new fiscal year, as buyers are seeking longer-term supply contracts and not spot sale deals.
Sources said that a Maharashtra-based integrated steel mill has reported a trade for around 8,000-10,000 mt for May-June shipment at around $1000/mt FOB with an EU-based trading firm.
A second exclusive flat steel producer has reported a trade of around 12,000 mt with a Rotterdam-based buyer at a price of around $1,010/mt FOB, the sources added.
