Indian hot dip galvanized (HDG) coil exporters have kept their prices at higher levels after aggressive increases earlier in the month, supported by robust demand from key overseas markets with trade volumes limited only by the availability of rolled coils at mills, SteelOrbis learned from trade and industry circles on Thursday, March 31.
The majority of ex-India HDG prices are at $1,320-1,380/mt FOB, with most deals over the past week reported at the higher end of the range, which is $30/mt higher compared to the lowest prices heard in the export market a week ago. But taking into account that last week some deals were done at $1,400/mt FOB for the EU market, the average reference price for ex-India HDG has remained stable over the past week at $1,350/mt FOB.
The sources said that strong buying interest has continued to be observed from the UAE and the EU regions, with sellers securing improvements in achievable prices.
However, with mills having limited hot rolled coil (HRC) rolled coil volumes, availability for downstream conversion is less and hence sellers have been restricted to lower-volume bids, the sources said.
“Acceptable prices among buyers in the UAE are rising even though the demand we hear is less, indicating that the high price regime seen now will continue to be extended. Prices of HRC in northern Europe have hardened again over the past week and hence ex-India HDG offers even at the higher end remain competitive,” a source at ArcelorMittal Nippon Steel Limited (AMNS) said.
A western India-based mill has also concluded a trade for 5,000 mt for June shipment to Rotterdam at $1,370-1,380/mt FOB, sources said.
