Indian hot dip galvanized (HDG) exporters have maintained prices during the past week in the range of $535-540/mt FOB, but trading activity has improved with business activity resuming after the holidays in the Gulf region supported by modest volumes, and amid sustained buying from the EU region, SteelOrbis learned on Thursday, August 6.
Even though booking volumes from EU buyers were relatively small, sustained buying of ex-India HDG has boosted sentiments in the market and expectations that manufacturing units in the region led by automobile makers increasing assembly line output will trigger higher volume interest.
Market sources said that a western India-based steel mill has concluded a deal to Antwerp for an estimated volume of 8,000 mt at $535-538/mt FOB. The same steel mill also concluded a supply contract with a buyer in the Gulf for 10,000 mt at around $536/mt FOB for end-of-October delivery, the sources said.
Another western India-based integrated steel mill has concluded a deal for 12,000 mt with an Middle Eastern buyer at a price of around $540/mt FOB, the sources said. This exporter firmed up a deal for 8,000 mt with a Singapore-based trading firm at a price estimated by the market at slightly lower than $535/mt FOB, the sources added.
An eastern India-based producer with a steel mill in Odisha reported a deal for 12,000 mt with a Gulf-based buyer at $535-538/mt FOB.
“By maintaining ex-India prices, exporters are aggressively maintaining price competitiveness vis-à-vis Chinese export offers which are seen to be firming up, resulting from a price increase in the local China market,” an official at a private steel mill said.
“However, it is to be watched if Indian exporters can maintain price competitiveness at current export prices since local prices of inputs like zinc are rising. Also, local integrated steel mills have limited volumes of hot rolled coil (HRC) available for conversion as HRC export volumes are rising at a faster pace,” he added.
