Indian hot dip galvanized coil (HDG) export activity has witnessed a slight revival of buying from the Gulf region following price cuts in earlier weeks, SteelOrbis has learned from trade and industry circles.
Sources said that price reductions in earlier weeks to the range of $1,100-1,130/mt FOB began to induce more buying interest from the Gulf Co-operation Council (GCC) market, as price stability in the EU and China prompted short-term forecasts that the downtrend has run its course.
“Overall trading in imported flat products has improved in the Gulf. In the specific HDG product category, ex-China prices will remain stable and buyers have returned to book volumes, although volumes have been on the lower side,” a source at ArcelorMittal Nippon Steel Limited (AMNS) said.
“On the sellers’ side, the fall in local HRC prices increased the spread with HDG prices, prompting mills to increase export offers of the latter,” the source said.
According to trade circles, a Gujarat-based mill reported a booking for an estimated tonnage of 10,000 mt to the Middle East at around $1,100-1,110/mt FOB.
The same mill also was heard to have confirmed a booking for January shipment of 8,000 mt with a Saudi Arabia-based buyer at a price of around $1,125-1,130/mt FOB, the sources said.
A relatively modest volume booking of 5,000 mt from a Nigerian buyer was received by a Mumbai-based steel distributor at a price of around $1,125/mt FOB, according to market circles.
