Indian hot dip galvanized (HDG) coil exporters have maintained prices unchanged, but this is largely notional as most mills have halted fresh bookings overseas, having exhausted export allocations and keeping limited inventories of hot rolled coil (HRC), SteelOrbis learned from trade and industry circles on Thursday, February 24. Moreover, rare deals have been reported at lower levels, signaling the bearish mood prevailing in the export market.
Officially ex-India HDG prices have remained unchanged at $1,070-1,100/mt FOB but no deal was reported in the market, as mills have a large backlog of HRC deliveries to be completed before the end of the fiscal year.
The sources said that no mills were heard to be confirming new deals for any grade of coils as there are not enough volumes available at producers to meet domestic demand and overseas sales at least until the end of March.
“Availability to meet domestic demand is the biggest reason for mills pulling back from exports. Sellers are also watching the Russia-Ukraine war and things are very unclear regarding its impact on trade at the moment,” a source at a private mill said.
“Apart from the geopolitical crisis, we expect April prices to be lower and this assessment will weigh in as local mills start completing export allocations for the first quarter of the next fiscal year,” the source said.
According to a Mumbai-based trader, Indian exporters will continue small-volume exports of HRC from limited availability, but higher value-added sales for exports will remain at a very low level for the coming weeks.
Only one deal for a very small volume of 5,000 mt of ex-India HDG has been reported to the Middle East at $1,050/mt CFR.
