Indian hot dip galvanized coil (HDG) export prices have tumbled during the past week, moving down $10-15/mt to $535-540/mt FOB as exporters have rushed to conclude even small-volume deals, SteelOrbis has been informed on Thursday, March 26.
According to traders, most exporters have been agreeing to conclude limited deals even at lower prices for early deliveries, to beat the possible closure of ports and to cut inventories as much as possible ahead of the further worsening of the trading environment.
Market sources said that only two western India-based steel mills have been able to conclude export deals during the past week with buyers in the Gulf. The first deal was concluded at $533/mt FOB for April delivery, while the second mill concluded a contract at the slightly higher price of $535/mt FOB.
The integrated steel mills have been rushing to complete deliveries and loading as early as possible in view of the Indian Ministry of Shipping issuing a circular during the past week allowing ports to close down if necessary citing force majeure in the wake of the national lockdown imposed by the government. Many private ports operated by the Adnani Group have already declared force majeure, while government-operated major ports have been operating normally so far, but sources have said that there are huge uncertainties over how long they will continue to do so.
“Only western India-based steel mills close to ports are able to aggressively rush export deals. But this might also come to a halt considering the logjam at ports, the increase in the turnaround of vessels already at the docks, and the increase in freight forwarding charges,” a manager at a western Indian steel mill said.