Ex-India hot dip galvanized (HDG) coil prices have been hiked by major mills citing rising input costs, though inactive trade conditions have continued to be prolonged by competitive challenges in terms of quota tariffs in Europe and by logistical challenges to shipments to the Gulf region, SteelOrbis learned from trade and industry circles on Friday, August 7.
Sources said that ex-India HDG prices have been increased by major mills by $20/mt to the range of $800-810/mt FOB amid a surge in prices of furnace fuel and zinc, but bids have continued to remain at lows of $720-740/mt, and the further widening of the bid-offer gap has made deals more elusive.
It was pointed out the domestic price of zinc has increased to levels of INR 390-400/kg ($4-4.5/kg) from levels of INR 350/mt ($3.6/kg) two to three months ago, in response to international zinc prices now near a four-year peak, and mills have been compelled to pass on this cost, together with the rise in energy costs, to consumers.
Adjusting export prices to push deals is not viable at a time when producers are facing cost pressures, an official at a private mill said.
Moderate domestic demand can absorb current production levels and hence mills have almost stopped submission of offers overseas.
However, two traders have claimed that a western India-based exclusive flat product producer has sold an estimated 12,000 mt for delivery to the Gulf at around $780/mt FOB, but this could not be confirmed by other sources.
