Indian hot dip galvanized (HDG) coil exports in the past week showed a mixed trend of reports of some discounted sales in the Gulf region with buyers resisting recent price increases, while some deals to the EU have been concluded at higher price levels, SteelOrbis learned from trade and industry circles on Thursday, February 17.
Ex-India HDG prices have remained at $1,070-1,100/mt FOB, but some deals were heard to have been concluded with buyers in the Gulf Co-operation Council (GCC) countries at discounts of $10-15/mt, which were attributed to “maintaining a market presence” rather than an indication of a negative correction.
According to the sources, a western India-based flat steel producer reported a trade of 8,000 mt with a Gulf-based buyer at $1,060-1,070/mt FOB. However, the same mill is heard to have completed a trade for a larger tonnage of 15,000 mt at $1,090/mt FOB for Italy.
An Odisha-based integrated mill has reported a trade for 10,000-12,000 mt at $1,080-1,090/mt FOB, but the buyer’s identity could not be confirmed in trade circles.
“The market in a key region like the Gulf is showing mixed trends, with some deals being concluded lower early in the week, while some offers have been reported at the higher end but actual deal confirmations were not available,” a source at a private local mill said.
“The discounted sales heard in the local market are not an indication of the outlook. Flat steel prices are recovering across geographies. Indian mills also don’t have large export allocations for the current fiscal year. New deals going forward will consolidate higher,” the source said.
