Indian hot dip galvanized (HDG) coil export prices have been maintained at $790-810/mt FOB, but no significant trade has been reported during the past week with buyers from the Gulf and the European Union (EU) not responding to offers, anticipating a correction taking cue from the slight softening of ex-China prices, SteelOrbis learned on Thursday, January 7.
At the same time, Indian integrated exporting steel mills have also not been willing to adjust prices and push volumes overseas, having aggressively increased hot rolled coil (HRC) prices and targeting even higher levels in the current month, and it has not been economically viable to push up local prices while adjusting export prices lower.
“The slight weakening in HDG prices of key exporters like China is an outlier of a trend since most flat steel prices are bouncing back. Expectations of any downward price correction of buyers will mostly be belied in the near term and hence Indian exporting steel mills are in no hurry to adjust ex-India HDG prices. All the more so since local HRC prices have been increased sharply,” an official at ArcelorMittal Nippon Steel said.
At least two traders citing market reports said that, contrary to adjusting prices in response to the lack of response to offers, integrated steel mills can be expected to increase ex-India HDG prices by at least $10-20/mt to align them with new and higher HRC prices, even if buyers remain cautious, and it is unlikely to place any pressures on sellers as most have minimal inventories and low export allocations in the wake of strong local demand.
A market source said that one offer by a western India-based exclusive flat steel producer at around $800-810/mt FOB submitted to a Gulf-based buyer did not result in a transaction, with the latter deferring negotiations until later this month.
