Indian hot dip galvanized (HDG) export offers have maintained their strength at $895/mt CFR US on the back of healthy demand from the US and Gulf markets and are poised to breach the $900/mt mark, traders said on Thursday, February 21.
"Reports received during the past seven days from the US of higher January inward shipments of flat steel products have bolstered export sentiments in India. A few offers have been made marginally above $900/mt but no confirmation of transactions has been available," a Mumbai-based trader said.
"There have been substantial enquiries from the Gulf Cooperation Council (GCC) countries where a strong uptick in prices has been reported in local markets. Two local producers have been offering HDG at $820/mt ex-works to steel distributors in the Gulf," the trader said.
According to market sources, several global steel mills like Hyundai and POSCO have been increasing their HRC prices. Indian mills too have hiked HRC prices, and Indian HDG exporters have been seizing the opportunity to push through higher offers.
Chinese exporters are also heavily overbooked following the holiday earlier in the month and are struggling to meet export orders and hence Indian offers are expected to consolidate above the $900/mt mark in the coming weeks, sources said, adding that the trend could be undermined since there was a lot of uncertainty surrounding the sustainability of US demand.