Indian integrated steel mills have largely stopped submitting export offers for hot dip galvanized (HDG) coils over the past week as buyers have been seeking June-July supplies but sellers have refrained from responding to inquiries being unsure of plant production plans and of committing export allocations amid the uncertainties of the pandemic, SteelOrbis learned from trade and industry circles on Thursday, April 29.
Sources said that most integrated steel mills have become reconciled to a fall in output as 100 percent of captive oxygen production capacities are being diverted for medical use and, though the quantum of the output fall is yet to be definitively predicted, fixing export allocations is a challenge and sellers are refraining from making delivery commitments two to three months ahead. Last week, the price assessment for ex-India HDG was at $1,010-1,050/mt FOB, but the real offer level would be much higher, sources have said.
The sources said that no deals have been heard from any of the leading sellers over the past week. Ports are operational but logistics, transportation and handling of cargo are major issues facing all exporters.
“How much of the output of steel mills will be affected by the diversion of oxygen over the coming months is difficult to assess and will depend on how soon the pandemic is brought under control. If the output of blast furnaces is uncertain, availability of hot rolled coil (HRC) for conversion is also uncertain and allocation for markets, confirming supply contracts and committing deliveries at this point is a challenge,” an official from JSW Steel Limited said.
“Production, sales, exports are not a priority, saving lives is. We can get back issues of business only once the country is safe,” he added.