Indian hot dip galvanized (HDG) exporters have maintained prices unchanged amid ongoing inactive market conditions, apart from a stray deal emerging from Africa, but buyers in most destinations are staying away, SteelOrbis learned from trade and industry circles on Thursday, September 8.
Ex-India HDG prices have remained stable at $840-850/mt FOB with trade circles reporting a deal for an estimated 8,000 mt by a western Indian-based mill for shipment to Nigeria at the end of October at $830/mt FOB.
“Prices are being pushed up in western markets because of the cost push. But there is insufficient demand support owing to inflationary pressures. Buyers do not see any imminent rally in finished steel prices and hence are in no hurry to build up inventories,” a source at a large Indian mill said.
“The Gulf market is seeing weak demand and an excess of ex-China supplies and a mill in Dubai resuming HDG production since last month. Ex-India HDG could be competitive but sentiments in trade and user sectors are not conducive to deals,” he said.
An official at another private mill said that local producers do not have much leverage to use prices to push sales overseas as the domestic price of zinc prevails at a two-month high amidst shortages in import sourcing after the EU-based smelters cut down production impacted by rising energy costs.
