Ex-India hot dipped galvanized (HDG) coil prices have remained stable over the past week despite sluggish trading activity. However, according to industry sources, some mills are considering price reductions in the coming weeks to boost competitiveness in key export markets, including the EU and the Gulf region. While sellers are hopeful about a potential recovery in demand following the European holiday season, strategic price adjustments are being weighed up to support sales volumes amid weak domestic demand and tariff-related challenges abroad.
Sources said that ex-India HDG (Z120) prices have been kept unchanged at $685-700/mt FOB but they expect the wait-and-watch policy seen in Europe to be broken by planned price increases by producers, prompting distributors to look at imports. This, the sources said was expected to coincide with the end of the holiday season in late August-early September and sellers expect some revival in trade activity around next month.
Regarding sales in the Gulf region, sources said that, although buyers were cautious due to high prices, the recent firming of flat product prices - including in China - has ruled out any short-term downward correction. As a result, buyers are expected to gradually return to the market to restock, the sources added.
At least two officials from large integrated Indian mills confirmed they are considering adjustments to ex-India HDG offer prices. The aim is to align with falling domestic trade prices and boost competitiveness in key export markets such as the Gulf and the EU, ultimately increasing overseas sales volumes.
“Export price adjustment is a necessity and to lay the ground to determine export allocations for the September-October third quarter. With domestic demand weak and tariff challenges emerging across geographies, we need to become much more realistic in terms of pricing our overseas sales. There is a need to consider a $20-30/mt lowering in offer levels. We need to either drop our price or ensure buyers are absorbing part of their import tariff burden. These elements will determine exports in the next quarter,” a market insider told SteelOrbis.