Ex-India hot dip galvanized (HDG) coils export prices have rebounded during the past week riding on the revival in Chinese steel prices and emergence of green-shoot buying from the EU, SteelOrbis learned from trade and industry circles on Thursday, June 3.
Indian integrated steel mills have increased HDG export prices by $50/mt to $1,150-1,200/mt FOB, and, although trades have been limited, stray deals have been concluded with buyers in the EU, signalling a revival in demand from the EU market, and new tariff quotas coming into effect in the EU could only support more buyers looking at Indian sourcing.
“One the one hand, the increase in HDG export prices is to be seen in conjunction with local steel mills increasing local flat product prices in June. On the other hand, the ex-India HDG price hike is to be seen against the backdrop of the continued shortage in the EU market and expectations that the new import quota coming into effect will ensure more buyers looking at India for sourcing in the coming quarter,” an official at ArcelorMittal Nippon Steel (AMNS) said.
“Local prices not only continue to seek higher levels in the EU, buyers in that market are facing very long lead delivery timelines. Indian mills are in a position to offer very good delivery lead times. Also, the recently seen weakening of Chinese steel prices has had comparatively less impact on European steel prices than Asian prices. This is very positive for Indian mills to push higher volumes into the EU as new quotas come into effect,” he said.
Sources said that a western Indian steel mill has reported a modest stray deal with an EU-based trading firm at $1,200/mt FOB for August shipment.
According to the sources, though the volume was on the lower side, the emergence of buying from the EU after a hiatus of several weeks is a big positive, indicating a short-term upside in activity for ex-India HDG shipments.