Ex-India hot dip galvanized coil (HDG) prices have continued to be pushed up for the third consecutive week, with local integrated steel mills buoyed up by the sharp rise in enquiries and deals in response to the surge in local prices ın the European Union (EU) combined with the tightening of availability, SteelOrbis has learned from trade and industry circles on Thursday, February 25.
Market sources said that local integrated steel mills have hiked export prices to the range of $850-870/mt FOB, increasing them for the third consecutive week, compared to $820-840/mt FOB a week ago.
The sources said that reports received in India indicate that local HDG prices in the EU have surged over the past week to breach $1,000/mt ex-work levels, particularly in northern Europe amid steadily tightening supplies, while both ex-China and ex-India prices have moved up sharply amid the rise in the number of deals concluded.
“The rise in HDG prices is a strong positive for Indian steel mills which have started receiving orders for May bookings for Europe deliveries. The only headwind to increasing overseas shipments is the limited export allocation from local steel mills due to captive availability of hot rolled coil (HRC) for conversion,” an official at a western India-based exclusive flat product producer said.
“Most European buyers reported a rise in delivery lead times and higher prices,” he added.
Sources said that a western India-based flat steel producer has reported two trades at $850-860/mt FOB for early May deliveries. A western India-based integrated steel mill reported another deal at $860-870/mt FOB, the sources said.
An eastern India-based HDG seller concluded a trade to a Gulf-based buyer at $850-860/mt FOB, the sources added.