Ex-India hot dip galvanized (HDG) coil prices have continued to surge unabated over the past week amid rising inquiries and bids from the European Union (EU) buyers and integrated steel mills starting to confirm bookings for the next fiscal year. The number of trades and volumes have been limited by projected low export allocations of producers in view of low availability of hot rolled coils (HRC), SteelOrbis has learned on Thursday, December 10.
According to market sources, ex-India HDG prices have risen to $750-760/mt FOB compared to $710-720/mt FOB in the earlier week, with the rise in buying interest from the EU region more than offsetting tepid interest from the traditional Gulf market.
“Major producers in the EU are continuously raising spot flat product prices amid supply constraints faced by users. This is triggering a rise in the number of inquiries and bids for ex-India HDG,” an official at a western India-based flat steel producing integrating steel mill said.
“Bookings for April deliveries have started at a higher level as local steel mills expect the HRC shortage in the local market to carry over to the next fiscal year, and the number of trades for HDG shipments are limited,” he added.
According to market sources, an Indian mill concluded a deal with an EU-based trading firm for April delivery at a price of around $750-755/mt FOB.
The seller also reported a trade with an EU-based end-user for early delivery at the end of March at a price of around $760-765/mt FOB, the sources said.
A Maharashtra-based integrated steel mill concluded a trade at a price of around $760/mt FOB for early April delivery with a EU-based trading firm. It also concluded a smaller-tonnage booking of 12,000 mt to the Middle East for end-March delivery at a price of around $755-760/mt FOB, the sources added.