Taking a contrarian move to the low interest from buyers in a key market like Europe, Indian integrated steel mills have increased their hot dip galvanized (HDG) coil export prices, aligning them with higher local hot rolled coil (HRC) prices and aiming to be ahead of the curve of the tightening supplies emerging in Europe, SteelOrbis has learned from trade and industry circles on Thursday, February 11.
Market sources said that integrated steel mills have hiked HDG export prices to the range of $810-830/mt FOB, up from $800/mt FOB on average a week ago.
“The HDG market is in a short-term transition amidst mixed signals and buyers are on wait and watch. Buyers in the Gulf region are expecting prices to fall. Prices have risen sharply in the US and, while they are stable in Europe, supplies are tightening,” an official at ArcelorMittal Nippon Steel (AMNS) said.
“Indian mills are aligning HDG prices to increase the spread with domestic HRC prices to ensure higher realizations from overseas shipments at a time when the Indian rupee had hardened significantly above INR 73.00 to the US dollar. It is also to stay ahead of the expected rebound in prices from tight supplies in Europe, even though at the moment buyers are awaiting the next trend to emerge,” he added.
“With the fact that Chinese offers will be absent for the holidays, Indian exporters are expecting acceptance of higher prices in key markets,” he added.
Sources said that a western India-based exclusive flat steel producer has reported a trade at $810-820/mt FOB. The same exporter also made a small-volume trade to the Middle East at $810/mt FOB.