Indian hot dip galvanized (HDG) coil export prices have continued to surge, gaining $10/mt week on week to $620-625/mt FOB, riding on the increase in average tonnage bookings by buyers in the EU region, the continued shortage of hot rolled coil (HRC) availability for re-rolling, and Chinese exporters continuing to push up their export prices, SteelOrbis has learned on Thursday, November 5.
According to market source and traders, the number of the EU-based buyers active in the Indian market has increased over the past week, indicating that demand has continued to remain strong in the EU even though several European countries are facing fresh waves of the pandemic, although economic activities are expected to remain largely unaffected.
Market sources said that a western India-based integrated steel mill specializing in flat products has reported a booking of an estimated 25,000 mt for January shipment to an Antwerp-based buyer at a price of around $625/mt FOB.
The same mill also has concluded a trade for a more modest tonnage of 10,000 mt to the Middle East at a slightly lower price reported at around $620-622/mt FOB, the sources said.
It has been learned that an eastern India-based steel mill received a bid for an estimated volume of 30,000 mt, but the deal was concluded for a lower volume of 20,000 mt at around $620/mt FOB as the seller was unable to supply the required tonnage owing to its own tightness of supplies of HRC.
A Maharashtra-based steel mill has reported a trade of 12,000-15,000 mt with an EU-based trading firm for February delivery at a price of around $622-625/mt FOB, market sources said.
“The relatively quiet import activity in the Gulf region is seen to be offset by the steady increase of booking volumes from the EU market. Higher prices are being absorbed by buyers. The only issue is whether local exporting integrating steel mills have sufficient re-rolling capacity to meet overseas demand against the backdrop of high domestic demand for HRC, even at a higher price,” an official at an Indian private integrated steel mill said.