Indian integrated steel mills have marginally increased their hot dip galvanized (HDG) coil export prices by $5/mt week on week to $515-520/mt FOB as they have increased their focus on maximizing export realizations, also supported by steady low-volume bookings in key markets, SteelOrbis was informed on Thursday, May 14.
Some of the steel mills, which had sharply reduced conversion of thinner gauge HR coils to HDG, are reported to be gradually increasing production to be able to serve demand in the key Gulf and Asian regions.
Market sources said that reports of European customers starting to resume operations have emboldened Indian steel mills to attempt to nudge up export prices.
The sources said that a positive indication is a contract concluded during the past week for a modest volume of 12,000 mt with a EU-based trader by a western India-based steel mill at around $520/mt FOB for early July. Reports in the market indicate that the deal was done in lieu of an EU-based affiliate of the Indian steel company.
An eastern Indian steel mill with a plant located in Odisha has reported a contract with an Asian trader for 20,000 mt for July delivery at a price estimated in the range of $516-518/mt FOB, the sources said.
“Volumes of exports are still at a low level and it is difficult to say if export opportunities for finished flat products are reviving. Most local steel mills are shipping semis predominantly,” a manager at the steel mill said.
“Our market for flat products is predominantly in the west, particularly in the EU, while semis export is focused on the Asian region. Manufacturing is restarting slowly in the EU region. Raw material restocking and buying from Indian steel mills might increase, but at a very slow pace,” he added.
