Indian hot dipped galvanized (HDG) coil exporters stepped on the gas to hike prices to $800/mt mark and commencing bookings for deliveries for April-May, reacting to rise in number of bidders from the European Union (EU) region and sharp hikes in prices effected by European steel mills, SteelOrbis learned on Thursday, December 24.
At least two traders and an official in an integrated steel mill said that a number of producers are diverting volume offering from Gulf Co-operation Council (GCC) market to the EU as buyers in the latter are absorbing higher valuations of landed price.
Market sources said that ex-India HDG prices increased to $790-810/mt FOB compared to $740-760/mt FOB in earlier week.
“Ex-India HDG valuation is still attractive for EU buyers, especially after the latest price hikes in wake of northern Europe steel mills increasing price close to $900/mt ex-works. There is a lot of shortage in EU and number of bids and inquiries received by Indian exporters is steadily rising. With ex-China HDG also increasing at a faster pace, Indian producers have commenced bookings for May deliveries expecting shortage of hot rolled coil (HRC) for captive conversion to ease in the new fiscal,” an official with a western India-based flat steel integrated mill said. “There is almost negligible export allocation for current fiscal, as HRC inventories are low and volumes already booked for rest of current fiscal,” he added.
An official with an eastern India-based exporting steel mill said that demand in the Gulf region is strong, but buyers are seeking CFR valuations of around $770-790/mt and hence his mill has shifted even limited volume offerings to the EU market, where achievable price is more attractive.
According to sources, the western India-based exclusive flat steel integrated mill reported a trade to an EU based trading firm for May delivery at around $800/mt FOB. The same exporter also concluded a smaller tonnage deal with a Singapore based buyer at slightly lower price of $790/mt FOB.
A Maharashtra based steel mill concluded a trade for 25,000 mt with an EU-based end user for April delivery at price estimated by the market at around $810/mt FOB, the sources said.