Ex-India hot dip galvanized (HDG) coil prices have been pushed up aggressively by local integrated mills riding on continuing higher prices in the US and the EU regions, but Indian sellers, with limited stocks, are reported to be deferring larger-volume deals to the next quarter, SteelOrbis learned from trade and industry circles on Thursday, March 9.
Ex-India HDG (Z120-140) prices have increased to $950-1,100/mt FOB compared to the tradable level of $910-950/mt FOB a week ago, amid rising demand from the Middle East and North Africa (MENA) and the EU as more buyers have been looking at alternative sourcing with mills in the EU and the US resorting to rapid price hikes.
Sources said that an eastern India-based mill reported a trade for 12,000 mt to Nigeria at $955/mt FOB and a small volume to Europe was sold at $1,010/mt FOB.
A Gujarat-based exclusive flat steel product producer concluded a 10,000 mt deal with a Middle Eastern trading firm at $950/mt FOB and a second deal for 5,000 mt with a Singapore-based trader at $1,000/mt FOB.
“Ex-India HDG prices have been pushed up amid a combination of continuing low exportable volumes available with sellers and rising demand across key markets. But local mills have been able to retain competitiveness as western mills are steadily increasing local prices,” a source from a large Indian mill said.
An official at a government-run mill said that, in view of strong demand and particularly buyers from the EU seeking end-of-April shipment, it has been heard that at least two sellers have been diverting stocks under long-term supply agreements with local buyers, indicating that tightness of supply is acting as a brake on responding to the higher number of bids received from overseas buyers.
