Although buyers in key markets like the Gulf Co-operation Council (GCC) have been cautious in purchases, Indian hot dip galvanized (HDG) exporters have continued to push up prices slowly to create a higher baseline as negotiations with EU buyers for January shipments have started, SteelOrbis learned from trade and industry circles.
Ex-India HDG prices have been reported in the range of $1,140-1,170/mt FOB compared to $1,130-1,160/mt FOB a week ago, and, though firm trades in the Gulf have been limited, exporters have started negotiations for supply contracts for January with EU buyers, and a higher baseline prices offers greater bargaining power to sellers.
It has also been learned that local HDG prices in the EU region are holding firm and European steel mills are refusing to lower prices and, against this backdrop, Indian exporters feel optimistic that increased prices will be absorbed by buyers once new tariff quotas become available from the quarter starting in January, the sources said.
Sources said that a deal reported in the market was by a western India-based flat steel producer for an estimated tonnage of 20,000 mt to the Middle East at $1,140-1,150/mt FOB.
Another western India-based integrated steel mill has reported a modest-volume trade of 8,000 mt with a Nigeria-based buyer for November delivery at $1,150-1,160/mt FOB, the sources said.