Indian hot dip galvanized (HDG) coil exporters have been able to improve price realizations amid improved bookings from the EU markets of Spain and Italy, compensating for Gulf buyers desisting from committing trades, SteelOrbis has learned from trade and industry circles on Thursday, June 24.
Ex-India HDG prices have been successfully pushed up by $100/mt to $1,200-1,250/mt FOB amid higher bids received from EU buyers.
The sources said that EU-based HDG sellers are fully booked and lead times for supplies have increased significantly, triggering higher interest in ex-India HDG where sellers are still able to commit trades for end-of-August deliveries.
In contrast, an official with a western Indian exclusive flat steel producer said that, despite reports of low inventories, buyers in the Gulf are staying away from the market after recent falls in prices and lack of certainty regarding short-term price trends. He said that, considering the shortage and long lead times for deliveries in the EU, the price increase by Indian exporters had been “conservative” and limited by a lack of activity seen from the Gulf region.’
As a note of caution on the outlook, the official said that rising freight costs and the impact of recent losses in steel futures in China could provide headwinds for Indian exporters’ attempts to push up HDG prices further.
A western India-based steel mill has reported a trade for 12,000 mt with a EU-based trading firm at a price of around $1,200-1,230/mt FOB. A Maharashtra-based integrated steel mill has reported a trade with an EU buyer at $1,200/mt FOB, though the tonnage could not be confirmed in the market.
