Indian hot dip galvanized (HDG) coil export prices have been largely maintained unchanged during the past week as market activity witnessed improvements, but exporters were reported to be lowering prices marginally to push volumes particularly in the Gulf Co-operation Council (GCC) region, SteelOrbis learned from trade and industry circles on Thursday, June 10.
Ex-India HDG prices were maintained at $1,150-1,200/mt FOB, but reports were heard in the market that local integrated steel mills were accepting prices in the range of $1,130-1,140/mt FOB to conclude deals particularly with Gulf buyers.
The sources said that, while demand in the Gulf has remained stable, buyers have been seeking downward adjustments to HDG offers in line with the slight weakening of hot rolled coil (HRC) prices in the local market.
“The marginal adjustments to HDG export prices is just a strategy to maintain volumes in key markets. Such a pricing strategy is very normal and not any indication of a trend as the outlook remains very positive,” an official at ArcelorMittal Nippon Steel (AMNS) said.
“Buying from the EU region is still to gain momentum. The HDG market is pinned on the EU region and, once more buyers become active as expected, there is significant headroom for prices to rebound and consolidate at higher levels,” he added.
Sources said that a Maharashtra-based integrated steel mill has reported a trade for around 15,000 mt to the Middle East at $1,130-1,135/mt FOB for end-of-July shipment.
A Mumbai-based large commodity trading firm has reported a deal for an estimated tonnage of 12,000 mt at a price of around $1,140/mt FOB, but the identity of the buyer could not be ascertained in the market.
