Indian hot dip galvanized (HDG) exports have witnessed a slight revival driven by improved buying interest from the Gulf region and supported by stray deals from Africa, but at lower prices, SteelOrbis has learned from trade and industry circles on Thursday, December 23.
Taking a cue from declining HDG prices in the EU, ex-India prices have also fallen, to levels of $1,050-1,080/mt FOB compared to $1,080-1,100/mt FOB a week ago, triggering revived trades from the Gulf Co-operation Council (GCC) and supported by smaller tonnages booked by Egypt.
“New deals are emerging but at lower prices in reaction to global declines in flat product prices. Year-end considerations are keeping volumes low. Our assessment on determining export allocations will start in January once export tariff quota issues in the EU become clear,” a source at ArcelorMittal Nippon Steel Limited (AMNS) said.
“There is strong upside resistance to prices from weak demand from automobile sectors across markets, which will extend well into the next quarter. Positive expectations are more on increasing volume shipments overseas to offset narrow margin realizations,” the source said.
A western India-based mill has reported a trade for 8,000 mt to the GCC at $1,050-1,060/mt FOB, while an eastern Indian mill is heard to have concluded a trade for 12,000 mt with a UAE-based buyer at a price of around $1,060-1,070/mt FOB.
A Maharashtra-based mill has reported a trade for 10,000 mt with an Egyptian buyer for February delivery at $1,070/mt FOB, the sources said.
