Still adopting an aggressive pricing strategy, Indian HDG exporters have increased their prices by $100/mt for the second consecutive week to a historical high. Although aggregate trading levels have been limited by holidays in the Gulf region, exporters have remained bullish over renewed buying from the EU market, SteelOrbis learned from trade and industry circles on Thursday.
Sources said that local integrated steel mills have pushed up ex-India HDG prices to $1,200-1,250/mt FOB, anticipating fresh bookings from the EU before current month ends, when new import quotas are expected to kick in, amid consecutive hikes in prices in the European steel maker by ArcelorMittal.
According to market sources, reports indicate that the EU based steel mills have been increasing prices across flat products for six consecutive weeks and sustained shortage in the region would ensure ex-India HDG offers very attractive for buyers in midst of short supplies.
“There is generally a lull because of holidays in Gulf but the mood remains very bullish. Buyers are already talking to us and ready to book as soon as new EU quotas become valid for Indian origin material,” an official from ArcelorMittal Nippon Steel said.
“There are pressures from the supply side too. Zinc supplies are tight in the local market and prices are increasing every week. At the same time, there is limited availability of hot rolled coil (HRC) allocation for downstream value addition,” he added.
An official from another private steel mill said that exporters are positioning themselves with higher prices aligned to Chinese exporters who are back in exports markets with higher offers. Also sales are expected to resume at much higher levels from next week as business activity increases in the Gulf and gain momentum as EU buyers will be back toward month end.
Sources said that a western India based integrated steel mill has reported a booking early in the week to the Middle East at $1,200/mt FOB.
