Indian hot dip galvanized (HDG) coil exporters have continued to push up export prices for the fifth consecutive week, riding on the resurgence of buying interest in the Gulf region, which supports already robust buying in the EU market, SteelOrbis has learned from trade and industry circles on Thursday, March 11.
The sources said that ex-India HDG trades have been heard in a range of $880-890/mt FOB, compared to levels of $870-880/mt FOB a week ago.
It was pointed out that, with the EU steel mills like ArcelorMittal increasing steel coil prices including HDG and northern Europe ex-works HDG prices rising to levels of above $1,050/mt, buying activity for ex-India HDG by both end-users and trades has remained strong and competitive even after factoring in the recent surge in freight costs.
Sources said that buying interest in the Gulf Co-operation Council (GGC) has been seen to be reviving in anticipation of local price increases, but Indian integrated steel mills have preferred to wait for a while for higher prices levels to consolidate before submitting offers, as buyers have still been looking to conclude deals at lower levels of around $860/mt FOB, while sellers have been seeking realizations on a par with EU sales prices.
A western India-based steel mill has reported a trade with a Rotterdam-based trading firm at $880-885/mt FOB for May delivery.
A Gujarat-based integrated steel mill has reported a higher-tonnage trade deal with an EU-based end-user at a price of around $885-890/mt FOB, the sources said.
A Jharkhand-based integrated steel mill has concluded a trade with a Middle Eastern buyer at $870/mt FOB, the sources added.
“Demand and tight supplies in the EU are driving Indian HDG exports. Only rising freight costs are tempering buyers’ appetite for imports. The export price target of $1,000/mt FOB does not seem too unrealistic in the near term,” an official with a Maharashtra-based steel mill said.
“Indian steel mills' ability to leverage strong overseas buying will be limited by the availability of hot rolled coils for captive conversion,” he added.
