Indian exporters of hot dip galvanized (HDG) coils have increased their export offers by $10/mt to $575-580/mt FOB over the past week but with some steel mills offering discounts to secure contracts in the Gulf region and have a presence in Europe, SteelOrbis has learned on Thursday, February 27.
Exporting local steel mills have been compelled to adjust export offers to offset steadily increasing input costs like zinc, but have been willing to offer discounts and conclude deals at the lower end of the price range.
Market sources said that a western India-based steel mill has reported a trade of an estimated volume of 6,000 mt with a buyer in Italy at $572/mt FOB, net of discount. The exporting steel mill is expecting further supply contracts in the EU region.
However, the sources added that most Indian steel mills will be limited in increasing deals to the EU as there is limited availability of thinner gauge hot rolled coil (HRC), the primary input for coated flat steel products, and discounting may not be sustainable in view of rising input costs.
Two other traders have reported that, while buyers in the Gulf Cooperation Council (GCC) region have remained cautious as regards concluding deals, waiting for imported HDG prices to soften before placing orders, another western India-based steel mill was able to conclude a deal to this destination for a relatively small volume of 5,000 mt at $575/mt FOB for April delivery.