Supported by the rise in local base prices across finished products and the continuing increase in prices in the EU, Indian integrated steel mills have nudged up their hot dipped galvanized coil (HDG) export offers, although the pace of the upward trend has eased over the past week and the number of trades has been limited by sellers seeking long lead times for deliveries, SteelOrbis has learned from trade and industry circles on Thursday, April 8.
Ex-India HDG deal prices have reached $1,010-1,030/mt FOB and offers have moved up to $1,050/mt FOB, compared to the tradable level at $1,000-1,010/mt FOB last week. The pace of the rise in prices has eased, as at least a section of buyers in the EU have been reluctant to conclude trades with sellers seeking July-August shipments sales.
Explaining the long lead delivery time, a marketing official at ArcelorMittal Nippon Steel (AMNS) said that, given strong local and export sales of hot rolled coils, domestic steel mills have very limited HRC stocks for captive conversion and cannot ensure shorter delivery times as sought by buyers, particularly in view of the short supplies in the EU.
“In any case, buyers in key markets like the EU have few import options. Long lead times are the new normal in the market of rising prices and limited supplies,” he said.
Sources said that a western India-based steel mill has reported a trade for end-of-June delivery with an EU-based steel distribution and services firm at around $1,010-1,020/mt FOB.
The same steel mill also reported a trade to another destination at $1,000-1,020/mt FOB, the sources said.
An eastern India-based integrated steel mill also sold 8,000 mt to a Rotterdam-based buyer at $1,020-1,030/mt FOB for June-July delivery.
