Indian hot dip galvanized (HDG) coil exporters have been back at nudging up their prices but trade activity is down, not owing to lack of buyer interest, but as most local mills are facing sharp drawdowns in export allocations available to meet April shipment commitments, SteelOrbis learned from trade and industry circles on Thursday, February 23.
Ex-India HDG (Z120-140) prices have been in the range of $900-920/mt FOB. Offers to Europe are still at $920/mt FOB and far above, but some deals to other markets have been done at a lower level.
Sources said that, while demand was seen to be improving from the Middle East supported by continued buying interest in Europe, most mills would be in a better position to leverage market condition once export allocations for the next quarter are available and May-June shipment contracts are on table.
The mill reported a small deal at $900/mt FOB for Egypt delivery, the sources said. A western Indian mill reported a trade for 5,000 mt with an undisclosed buyer at $888/mt FOB, the sources added.
“The market in the west is looking good. More local mills are joining in to push up flat product prices in Europe and the US. The export price increase by Indian mills is more modest, maintaining their price competitiveness,” a source at ArcelorMittal Nippon Steel Limited said.
“However, local producers do not have much exportable surplus available right now to assure April deliveries to buyers. Most mills are already operating above 90 percent average. Higher export allocations at mills are expected to become available from mid-March onwards and in time for contracts for May-June shipments,” he said.
