Indian hot dip galvanized (HDG) coil exporters have cut prices reacting to weakening of the local currency but still failed to attract buying. However, increases in local prices in the EU region have offered a sliver of optimism, SteelOrbis learned from trade and industry circles on Thursday, September 1.
Ex-India HDG prices have been cut by an average of $10/mt by mills to the range of $840-850/mt FOB, but this has failed to attract any buying or to result in confirmed deals as buyers are uncertain over short-term trends in key destinations like the Gulf.
“Despite the lack of export activity over the past few weeks, there has been some optimistic outlook coming from the EU region getting back to business after the holidays. It is, however, too early to expect this to have any salutary impact on ex-India business,” an official at a private local mill said.
“The EU mills are cutting back production to ease supply-side pressures and support prices. Ex-works HDG prices in Europe are around €930-980/mt. Against this, ex-India prices are still very competitive. But for this to have any impact on actual trades, exporters will have to wait,” he said.
However, two local traders maintained a more cautious outlook, saying that the recent drop in ex-India prices has had little impact in the key Gulf region, which is still accessing cheaper ex-China sources and both demand and price have to recover significantly for Indian mills to bounce back in terms of volume shipment overseas.