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.
