Indian hot dip galvanized (HDG) coil exporters have become more aggressive in increasing prices, reacting to steady reports of a shortage in the European Union (EU) market and strong bids received from buyers with volumes on offer only limited by low availability of hot rolled coil (HRC) from local integrated steel mills, traders said on Thursday, December 17.
Market sources said that in one of the most aggressive moves over the past week local integrated steel mills increased export price by a substantial $30/mt to the range of $740-760/mt FOB, estimating that the landed price of ex-India HDG for buyers still at least 10-15 percent lower than supplies being made by European steel mills.
However, local exporting steel mills are only confirming bookings beyond April 2021 delivery commitments, anticipating that the shortage of HRC in the local market will ease in the new fiscal year, enabling mills to allocate higher volumes for HDG conversion and shipment overseas.
Market sources said that a western India-based exclusively flat product integrated steel mill has concluded a trade for around 30,000 mt at a price of around $750/mt FOB with an EU-based trading firm. The same mill has also reported a trade for around 25,000 mt with a European end-user at a slightly higher price of around $755-760/mt FOB, the sources added.
They pointed out that, while most activity among exporters focused on the EU region as higher valuations are more acceptable to buyers there, Gulf buyers are still cautious in concluding deals amid steadily increasing prices of ex-India HDG, with only stray deals concluded in Gulf Co-operation Council (GCC).
A Maharashtra-based steel mill has reported a modest trade of 12,000 mt for April delivery, with a Bahrain-based trading firm at a price of around $740-745/mt FOB, sources said.