Ex-India hot dip galvanized (HDG) coil prices have been pushed up over the past week given the recent increase in domestic prices. Thus, higher quotes have been reported in new bookings in Europe, while Middle Eastern buyers are reported to be taking pause due to Ramadan.
Sources said that most large mills led by JSW Steel and Tata Steel have increased domestic galvanized flat and rolled steel products by INR 500/mt ($6/mt) and hence have increased ex-India prices to $960-1,010/mt FOB, up by $10/mt from the lower end of the range week on week.
In fact, sources at mills said that bookings for May-June deliveries have gathered pace with local mills having more exportable volumes, while buyers have been rushing to conclude trades as ex-India prices despite recent hikes are still competitive as compared to other foreign suppliers. Thus, according to market insiders, several deals for ex-India HDG have been reported in Europe at around $975-980/mt FOB this week. Besides, another deal is reported to have been signed with buyers in South Africa at $990/mt FOB. At the same time, talk about new deals signed at $1,000/mt FOB and above has also been circulating in the market this week.
“There is a lot of buoyancy in key western markets with China becoming an active trader at higher prices for May-June bookings. There is a lot of chatter that margins are improving for most producers. These are strong positives for Indian mills going forward having higher export allocations for the April-June quarter,’ an official at a private mill said.
“Indian mills’ price increases in recent weeks have been more conservative given the competition. We assess further traction in overseas sales once business in the Gulf region picks up pace,” he said.