Indian hot dipped galvanized (HDG) coil exporters kept up attempts in pushing up prices over consecutive weeks, increasing it by $15-20/mt to $660-670/mt FOB, but unlike earlier weeks, buyers were seen to becoming cautious particularly from EU markets expecting price correction to set in after unabated rises, traders said on Thursday.
They said that while buyers from Gulf region largely stayed away owing to holidays ahead in first week of December, buyers in EU were reluctant to commit large volume bookings anticipating that upside potential of prices to have run its course and was now poised for a downward correction.
However, this did not prevent Indian integrated steel mills from keeping up upward momentum in price hikes largely supported by sustained shortage of hot rolled coil (HRC), rising input costs of iron ore and zinc and low export allocations.
“With sellers having all the pricing power and limited exportable surplus, the slight fall in buying interest does not impact exporting steel mills much,” an official with ArcelorMittal Nippon Steel (AMNS) said.
“Sellers are under no compulsions to adjust prices to drive sales in overseas markets. I do not think current ex-India HDG price has significant downside risks in the medium term,” he added.
Market sources said that a western India based flat steel producing integrated steel mill reported a trade with a Gulf based trading firm for 15,000 mt for February delivery at price of around $670/mt FOB.
A western India based integrated steel mills reported a trade of 12,000-15,000 mt with EU based buyer for price of around $665/mt FOB for end-January delivery, the sources said.
