Indian integrated steel mills have continued to push up hot dip galvanized (HDG) export prices for the fourth consecutive week, riding on the surge in bids received at higher levels, particularly from the European Union (EU) market, which has been facing a tightening of supplies and unabated local price rises, SteelOrbis has learned from trade and industry circles on Thursday, March 4.
The sources said that, with local EU HDG prices firmly breaching the $1,000/mt mark over the past week, Indian exporters have been well placed to seek higher achievable prices for assured delivery commitments.
Owing to the widening demand-supply gap and low inventories at end-users in the EU, buyers have been aggressively seeking to conclude deals for ex-India HDG, while even higher prices are still competitive vis-a-vis prices quoted by European sellers.
Sources said that ex-India HDG prices have risen to $870-880/mt FOB compared to $850-870/mt FOB a week ago and most trades in the past week have been at the higher end of the range of assured end of April-early May shipments, indicating buyers’ need to secure firm deliveries and the anticipation of a further rise in finished steel prices overall.
The higher prices and increasing buying activity from the EU region have been sufficiently supported by the revival in interest from the Gulf Co-operation Council (GCC) region, the sources added.
They said that a western India-based integrated steel mill with an exclusively flat steel product portfolio has concluded a deal at $880/mt FOB. The same exporter also reported a trade with a Middle Eastern trading firm at $875-880/mt FOB for early May shipment.
A Maharashtra-based integrated steel mill has reported a trade to an Antwerp-based trading firm at $870-875/mt FOB. An Odisha-based flat steel producer is heard to have concluded a supply contract with an EU-based customer at $880-885/mt FOB.
“Demand and prices are rising week on week in Europe and local prices having breached the $1,000/mt mark, to levels of $1,050-1080/mt ex-works in northern regions, while ex-China and ex-India offers even though increased promptly are still very attractive for end-users,” an official with a western India-based integrated steel mill said.
“Ex-Indian HDG offers touching the $1,000/mt mark on FOB cannot be ruled out in the near term. Neither China nor India have a large exportable surplus in view of limited availability of hot rolled coil (HRC) for captive conversion. Hence, the low flow of volumes in the international markets offer considerable headroom for further price increases and hence buyers are rushing to conclude deals,” he added.
