Indian mills hiked their local sales prices for flat rolled products by $65-80/mt in February. Given the increases seen in global steel prices, Indian mills have reflected the rises in question in their own prices. Currently, the local sales price of HRC is at $730-735/mt, excluding taxes; however, the prices are expected to increase by $40-50/mt due to the gap between local prices and export prices.
With regard to the export markets, while Indian mills had been giving offers at around $700/mt, they upped their export offers following the price rises announced by European, Russian and Ukrainian mills, and also due to the influence of the rising iron ore prices. At present, export offers given from India for HRC are at $820-850/mt FOB. There are offers for Europe at the level of €600-605/mt ($887-895/mt) CFR Antwerp. We may continue to hear further price rises from the Indian mills in the coming days. Generally speaking, Indian mills are giving offers particularly for HRC and HDG.
The galvanized steel market is currently active. Export offers for this product are at around $1,020/mt FOB. The order books of some mills have already been filled till the end of April. Indian mills will announce their prices for May; however, since the 2008 iron ore price has been revealed, they will most likely choose to wait before giving any new offers in an effort to get a better feel for the market situation. On the other hand, it seems that we will hear further increases in the prices of galvanized products. In the latest sales heard to have been concluded from India to Europe, the price level was €710/mt ($1,051/mt) CFR Antwerp. Moreover, there are bookings concluded to Italy at $1,050-1,080/mt CFR.
It seems that with the rise in the iron ore price, offers given by Indian mills will go up as well. Demand for galvanized materials is stronger than for HRC. The fact that Chinese origin HDG is being offered at lower prices is causing some difficulty for Indian mills.