Indian mills raise HDG export prices, emerging deals from Africa keep trading alive

Thursday, 06 October 2022 17:56:44 (GMT+3)   |   Kolkata
       

Indian domestic mills have nudged up hot dip galvanized (HDG) export prices to align them with recent across-the-board hikes in flat product prices in India and, while buyers from traditional markets in the Gulf and the EU have continued to stay away, trading activity has been kept alive by traders emerging from Africa.

Sources said that ex-India HDG offer prices have increased by an average of $10/mt to $870-890/mt FOB largely based on the rise in domestic prices and the increase in import costs of zinc rather than demand. Weak demand in the Gulf and the EU has been reflected in lower bids being received by mills. The SteelOrbis reference price has been increased by $10/mt over the past week to $850-900/mt FOB, with the midpoint at $875/mt FOB.

According to the sources, an eastern India-based mill has reported a trade for 12,000 mt with a buyer in South Africa at $900/mt FOB, with the price on the higher side attributed to the relatively short delivery timeline of November.

A Gujarat-based exclusive producer of flat steel products has reported a deal for 8,000 mt for delivery, also to Africa, at $880/mt FOB, the sources said

“Africa is a key market although volumes are low. We are aggressively looking at deepening our footprint in the continent and developing marketing and logistical efficiencies to cater to customers to compensate for prolonged sluggish demand in our usual destination,” an official at the mill said.

“We are also assessing markets in Nigeria, South Africa, Egypt and Morocco, aiming to appoint agents to offer more customized solutions to automotive component manufacturing units in the continent,” he said.


Similar articles

US sheet prices tick up modestly ahead of Easter weekend

28 Mar | Scrap & Raw Materials

US HDG imports up 10.6 percent in February

28 Mar | Steel News

Flat steel prices in local Taiwanese market - week 13, 2024

28 Mar | Flats and Slab

Chinese HDG export prices mainly stable, with negative bias in some offers

28 Mar | Flats and Slab

Ex-India HDG and CRC prices edge down, trade remains in doldrums

28 Mar | Flats and Slab

HDG consumption in Mexico up 12.0 percent in January

27 Mar | Steel News

Japanese crude steel output down 3.8 percent in February from January

27 Mar | Steel News

US flats source believe HRC prices are “at or near the bottom”

22 Mar | Flats and Slab

Romania’s sole flats mill cuts HRC prices, raises HDG and PPGI prices

22 Mar | Flats and Slab

Ex-India HDG prices stable due to silent trade amid multiple cheaper alternatives for buyers

21 Mar | Flats and Slab