Ex-India hot dip galvanized (HDG) prices have been adjusted towards the lower end, but no deals have been reported in the market, SteelOrbis learned from trade and industry circles on Thursday, November 2.
Sources said that ex-India prices are quoted in the range of $810-820/mt FOB against $810-840/mt FOB last week. However, some market intermediaries maintained that lowering the peak level did not result in any deals as large mills do not have any export allocations until December.
Meanwhile, the mills have been making strategic adjustments to prices in anticipation of January bookings expected to commence later this month and expectations of some buying interest to emerge after new tariff quotas are made available in the EU.
“These are just indicative prices, bringing down the peak rate possibly a medium-term marketing move. There is expectation that local mills in Europe will attempt to push up January prices. If Indian mills can get their pricing correct and export volumes are allocated for the last quarter, the current silent trading conditions can be broken once buyers commence bookings for January,” a source at Jindal Steel and Power Limited told SteelOrbis.
“But for local mills to bring exports back into focus, the rebound in western markets needs to be robust compared to the current strong local market conditions. An export margin improvement purely due to a favorable exchange rate will not be enough to push sales overseas,” another source said.