Indian integrated steel mills have increased their hot dip galvanized (HDG) export prices during the past week by $10/mt to $520-525/mt FOB in line with the increases in the local flat steel market and, even though trades have been limited, a silver lining has been provided by the tentative rise in buying interest from the EU, traders said on Thursday, July 9.
According to traders, buying volumes have remained steady though they have been for relatively small volumes, while exporters have been hoping that higher prices will be sustained if signs of EU buying gain momentum over the next few weeks.
Market sources said that a western India-based steel mill has concluded an export deal for 10,000 mt at price levels of $520-522/mt FOB for September delivery with a Bahrain-based steel mill and trading firm.
Another western India-based steel mill has entered into a supply contract for September delivery with an Antwerp-based steel distribution firm for an estimated volume of 9,000 mt at a price reported at around $525/mt FOB. Sources said that the deal was negotiated by the Indian steel mill through its Europe-based steel producing affiliate.
“Buying from the EU region has been scattered over the past few months. However, we are expecting that, with automobile and other industries rapidly normalizing operations, ex-India HDG, which is very price competitive compared to ex-China HDG, will gain momentum,” an official at the steel mill said.
An eastern India-based trading firm has reported a deal for 7,000 mt with a Singapore-based trading firm at a price of around $520/mt FOB.
“Indian integrated steel mills’ HDG prices are still very competitive even after the latest hike but any improvement in trade volumes will largely depend on the sustainability of buying from EU markets,” an official at a private sector steel mill said.
