Indian hot dip galvanized (HDG) coil exporters have continued to improve sales realizations from sales to the EU and have also been supported by some revival of buying interest in the Gulf region, SteelOrbis has learned from trade and industry circles on Thursday, March 18.
The sources said that ex-India HDG trades have been heard in the range of $890-920/mt FOB or even above, compared to $880-890/mt FOB a week ago, in response to the persistent shortage of material in the EU region and local EU prices surging up to $1,100/mt ex-works in northern European markets.
It has been pointed out that ex-India HDG even after weeks of price hikes by exporters still enjoy a price advantage compared to local prices or prices from other international suppliers. However, the sources were quick to add that, while buyers are still active in concluding trades, there has been caution as regards booking volumes amid reports that the EU tariff rate quotas (TRQs) for Indian steel exports are nearing exhaustion, which would rein in contracts over the coming weeks.
“The aggravating shortage of material in the EU will offset the negatives of the exhaustion of quotas. Even now, the delivery timeline for ex-India HDG shipment and delivery of local HDG supplies are almost the same, indicating the difficulties faced by end-users in securing timely supplies,” an official at an Indian private integrated steel mill said.
“However, if India’s TRQs are exhausted, it will limit the upside potential of ex-India HDG prices and exporters will have to adjust prices accordingly to factor in the higher landed cost net of higher duties,” he added.
Sources said that a western India-based exclusive flat steel producing integrated steel mill has reported a trade for 5,000 mt with a Germany-based steel distribution company at $900-920/mt FOB.
The same steel exporter has also reported a trade to the Middle East at around $880-900/mt FOB.
