Indian hot dip galvanized (HDG) coil exporters have increased prices by around $15/mt to $550-555/mt FOB. Only limited deals have been concluded to the Gulf and EU regions as suppliers have not been aggressively pushing higher volumes overseas amid higher prices of hot rolled coil (HRC) in the local market, sources said on Thursday, August 13.
The increase in ex-India HDG prices is more to align them with the surge in domestic and export prices of HRC, and limited deals with buyers in the Gulf and EU have been more to maintain a market presence in the regions.
Sources said that a western India-based steel mill concluded an export deal with an EU based trading firm for an estimated volume of around 10,000 mt for October at the price of around $550/mt FOB.
The same steel mill concluded an export deal with a Middle East-based trading firm for around 8,000 mt of HDG at the slightly higher price range of $552-555/mt FOB, the sources said.
An eastern India-based integrated steel mill has concluded a supply contract to the Gulf for 12,000 mt at around $550/mt FOB, market sources said.
“A demand revival was seen among Gulf buyers at higher prices. EU buying is also sustaining, although for lower tonnages,” an official at an integrated steel mill said.
“However, against the backdrop of the sharp rise in HRC prices in the local and export markets, HDG prices are moving upwards slowly. Exporting mills are, therefore, not aggressive in pushing higher volumes overseas and instead are getting better per ton realizations from HRC sales in local markets,” he added.