Ex-India hot dip galvanized (HDG) coil prices have been pushed up by local mills claiming a tightening of supplies of hot rolled coil (HRC) and an increase in volume bookings following the return of EU buyers over the past week, SteelOrbis learned from trade and industry circles on Thursday, January 19.
The sources said that the average price for ex-India Z220-240 HDG has increased by about $10/mt to $870-890/mt FOB, though the new targets of mills have all been above $900/mt FOB with unconfirmed market information of one deal even touching the $920/mt FOB mark. Some market sources said that this level is “unrealistic”, but, taking into account the uptrend in the European market, Indian mills may become even more bullish in the near future.
Marking a strong return of buying from the EU region, a western India-based exclusive flat product producer is heard to have booked two tonnages of 8,000 mt and 15,000 mt to the region at $870/mt and $880/mt FOB respectively.
Though not confirmed by the mill, trade channels have been rife with talk that the producer had commenced a long-term supply contract negotiation with a buyer from Italy for supplies in the second quarter of the current calendar year and this has been taken to be a strong positive sign that EU buyers are returning in larger numbers in the local market.
They said that, with ex-US flat product prices firming up and with the easing of gas prices in Europe likely to bolster manufacturing, flat product importers are increasingly looking at India for more competitive sourcing.
An eastern India-based seller has confirmed a trade for 10,000 mt for Egypt delivery at $875/mt FOB and another tonnage of 5,000 mt for the UAE at $870/mt FOB, the sources said.
A Singapore-based trader is heard to have booked 15,000 mt with an Odisha-based seller at $875/mt FOB for end-of-February shipment.
As a result, the reference price for Z120 Indian coils has increased to $780-820/mt FOB, versus $770-800/mt FOB last week.
