Ex-India hot dip galvanized (HDG) coil export prices have remained at $790-810/mt FOB even in the face of the previous softening of ex-China offers and the weakening of demand in key markets like the Gulf and the EU, resulting in no significant transactions reported in the market during the past week.
Sources said that prices were seen to be falling in the Gulf Co-operation Council (GCC) region and buyers were waiting for the fall to gain momentum into a definitive correction before concluding transactions.
The sources said that at least one western Indian exclusively flat steel producer submitted an offer to a Gulf based buyer, but the transaction failed to materialize with the buyer seeking a valuation of $820-830/mt on CFR basis.
It was pointed out that demand in the EU, which so far had been supporting ex-India HDG prices, has also been seen to be weakening, with buyers deferring contracts in the wake of the overall softening of flat product prices in most exporting countries and they have been unwilling to conclude a trade unless offered a “very good price”.
“Most exporters including us are not in a position to use pricing as a tool to trigger demand overseas in view of rising input costs and strong domestic demand. We will prefer to keep assessing various overseas markets and adjust our export allocations accordingly, and contracts will only be concluded at favourable realizations,” an official at a western India-based integrated steel mill told SteelOrbis.
