Indian hot dip galvanized (HDG) coil exporters have continued to push up prices, increasing them by $10/mt during the past week to $630-635/mt FOB, but, barring stray deals of small volumes with buyers in the EU and Gulf markets, exporters have been unable to respond to higher-volume bids as there just has not been sufficient hot rolled coil (HRC) available for rolling, SteelOrbis learned on Thursday, November 12.
HDG prices have been consolidating at higher levels in key markets like the EU and Gulf Co-operation Council (GCC) and buyers were willing to absorb the ex-India price hikes, but international trade has been moving deep into a suppliers’ market and a shortage of rolling material, limited trading volumes.
While exports of ex-India flat products in general have declined over the past two months reacting to rising local demand, HDG export volumes have been tempered by higher merchant sales of HRC and limited volumes for captive rolling by integrated steel mills, and hence the latter have been unable to respond to higher-volume bids from overseas buyers.
“Average bids for HDG from buyers in the EU are seen to have increased over the past one month. But we have limited inventories currently and there is no volume available for December loading and one is only able to book small volumes for January-February deliveries,” an official at a western Indian integrated flat product steel mill said.
Market sources said that this mill concluded a trade for an estimated volume of 10,000 mt with a EU-based trading firm for end-of-January delivery at a price of around $635/mt FOB.
Another western India-based integrated steel mill has reported a trade with buyers in the Middle East for around 15,000 mt for February delivery at around $630/mt FOB, the sources added.