Indian hot dipped galvanized (HDG) coil prices have increased by $10/mt during the past week to $600-615/mt FOB, on shortage of hot rolled coil (HRC) for captive re-rolling by integrated steel mills, increase in ex-China offers and renewed buying interest from the EU region, SteelOrbis learned on Thursday.
However, according to sources, trading activity as well as sales volume has continued to be limited as exporting steel mills had very small export allocations for December-January shipments in view of tight supplies and local supply commitment by producers.
Market sources said that buying interest from the EU region re-surfaced during the past week after a couple of weeks of lull but most of the contracted deals were lower than bid volumes.
The sources said that a western India based exclusive flat product producer reported a deal of estimated volume of 15,000 mt with Antwerp based buyer at around $615/mt FOB.
The same steel mill also reported a more modest volume trade of 8,000 mt with a Gulf-based buyer at slightly below $612/mt FOB, the sources added.
An integrated steel mill located in Maharashtra concluded a deal with an EU-based trading firm for 10,000 mt of HDG to be shipped in January, at around $615/mt FOB, the sources added.
“Due to the rise in the local HDG prices in the EU market, ex-India HDG has been very competitive even after Indian exporters hiked offers. But significantly, integrated steel mills are not in a position to meet bid volumes in view of extreme tight availability of HRC. Even captive downstream plants for HDG output are operating at lower levels as producers are pressed to meet rising local HRC supply commitments,” an official at a private integrated steel mill told SteelOrbis.