Indian hot dip galvanized (HDG) exporters have increased prices reacting to improved demand in the Gulf region, new bookings from the EU and the overall bullish market outlook for the period after the Lunar New Year holiday in China, SteelOrbis learned from trade and industry circles on Thursday, January 27.
Ex-India HDG prices have been pushed up by $10-15/mt to $1,050-1,075/mt FOB, with an increase in bookings reported by local steel mills.
According to sources, moderate volume bookings have emerged from buyers in northern Europe, after auto companies concluded long-term supply agreements with EU steel mills at higher levels.
Trade circles have estimated the total bookings received from the EU-based buyers to be around 20,000-30,000 mt over the past week.
Reports that major Japanese steel mills will raise HDG prices for post-April deliveries have prompted the EU-based trading firms to restock, leading to higher interest in ex-India material, the sources said.
“Demand in key markets like the UAE has improved significantly over the past week and ex-India prices are finding increased acceptance reflected in a greater number of deals being concluded. New bookings, although of moderate volumes from the EU-based trade firms, signal a positive outlook once tariff uncertainties clear up in the region,” a source at ArcelorMittal Nippon Steel Limited (AMNS) said.
“Apart from the demand side, Indian mills are increasing HDG prices to maintain spreads with hot rolled coil prices,” the source said.
A western India-based mill has reported a deal for 8,000 mt with a EU-based trading firm for March shipment at $1,050-1,060/mt FOB. The same exporter has also reported a trade for 15,000 mt with a buyer in the UAE at around $1,070/mt FOB for the end of February.
An eastern Indian mill has concluded a deal for around 12,000 mt with a Middle Eastern buyer at $1,060-1,065/mt FOB, the sources said.