Indian hot dip galvanized (HDG) export prices have increased by $10/mt to $525-530/mt during the past week amid the emergence of fresh enquiries and bookings from buyers in the European Union (EU), steady low-volume bookings from the Gulf Co-operation Council (GCC) region, and demand from Asia, SteelOrbis has learned on Thursday, May 28.
According to market sources, buyers in the EU have been showing interest in ex-India HDG for August deliveries as manufacturing units in the region are restarting their operations and Indian exporting integrated steel mills have availed of the renewed EU buying and still low availability of thinner gauge hot rolled coil (HRC) in the local market to increase their export margins.
The sources said that a western India-based steel mill has concluded a transaction to the EU for an estimated volume of 18,000 mt of HDG at $530/mt FOB for early August delivery. Though not confirmed, at least two market participants have said that the supply order was diverted to the Indian affiliate of an EU-based steel mill, which is yet to fully recommence operations of its plants in Italy and Spain and is entering into third-party supply chain arrangements with its Indian subsidiary.
A second western India-based steel mill has reported a contract for 8,000 mt with a GCC-based trading firm at the slightly lower price of $525-527/mt FOB with sources pointing out that, while buying has been cautious, a number of small-volume trades has continued to be seen in the region.
With ex-China HDG prices increasing over the past week in reaction to strong local demand and higher trading volumes, at least one Asian buyer has concluded two deals with an eastern India-based steel mill for an aggregate estimated volume of 22,000 mt at the price range of $525-528/mt FOB, sources said.
“Southeast Asia is the key destination for ex-India exports of semis. The EU is a major market for Indian flat products and this has come to a near standstill over the past few months. The green shoots of bookings from the EU is a major positive for local integrated steel mills,” an official at JSW Steel said.
“With manufacturing restarting in the EU and imports from India sustained, Indian steel mills will be able to diversify their exports beyond semis to Asian markets. This in turn in the medium term enables local steel mills to get back to increasing captive value addition to semis,” he added.
