Indian hot dip galvanized (HDG) coil exporters have increased prices substantially over the past week by $10-15/mt to around $590-605/mt FOB against the backdrop of tightening availability of hot rolled coil (HRC) of thinner gauge and to offset lower realizations in US dollar terms due to the strong local currency, sources told SteelOrbis on Thursday, October 15.
The sources said that, among key export destinations, demand in the traditional Gulf region has remained subdued, while buying interest from the European Union (EU) has continued to ensure sustained deals for modest volumes during the past week, even though most integrated steel mills have limited exportable volumes for December shipment against strong demand for HRC in the local market.
At least one official at an integrated steel mill said that buying interest from the EU has remained positive although booking tonnages remained cautious even as automobile manufacturers were seen to be bullish in restocking raw materials.
A western India-based exclusive flat product integrated steel mill has reported a trade for an estimated 15,000 mt for December delivery with an EU-based trading firm at a price of around $600-605/mt FOB.
Another western India-based steel mill has also reported a trade with an EU buyer for around 20,000 mt at a price of around $600/mt FOB.
An Odisha-based integrated steel mill has concluded a December supply contract for 10,000-12,000 mt with Gulf buyers at around $590-600/mt FOB, market sources said.