Indian hot dip galvanized (HDG) coils exporters have maintained their export offer prices at $580-590/mt FOB, but stray deals to the Gulf and the European Union (EU) markets have been reported at lower levels of $575-580/mt FOB, almost the same as last week. Local exporters have attempted to push volumes in the absence of Chinese offers, SteelOrbis has learned.
Sources in trade and producer circles said that, while demand in the Gulf Co-operation Council (GCC) market has showed little change from the previous dull conditions, occasional EU enquiries have been translated into firm trades for relatively modest-volume trades in the absence of any Chinese presence in these key markets.
Sources said that a western India-based integrated steel mill, through the sales network of its EU-based affiliate, was able to conclude a deal for an estimated 8,000-10,000 mt at a price of $578-580/mt FOB, net of an estimated discount of around two percent for December delivery to an Antwerp-based trading firm.
A Maharashtra-based steel producer has reported a trade for around 8,000 mt with a Bahrain-based trading firm at a price of around $575-580/mt FOB.
“Buyers are waiting for activity in China’s HDG export market to resume fully and the general sentiment is bearish on expectations of prices to soften. The discounted trades of the week by local exporters are likely to be formalized through the lowering of export offers shortly,” an official at JSW Steel Limited said.
“But at the same time, the downward adjustments in the HDG export price is not expected to be more than one percent, as integrated steel mills are not focusing on exports as there is a sharp tightening in internal availability of thinner gauge hot rolled coil (HRC) for conversion,” he added.