Indian integrated steel mills have cut their hot dip galvanized (HDG) coil export prices for the second consecutive week, trying to accelerate sales in such key destination markets like the Gulf Co-operation Council (GCC) region.
According to market sources, Indian steel mills have lowered their HDG export prices by $10/mt over the past week to around $510-515/mt FOB, aiming to increase competitiveness among buyers, but the latter have largely remained cautious as regards increasing booking volumes, expecting export prices to soften further as end-user demand will fall as several markets are facing the second wave of the pandemic.
“Indian steel mills are aggressively pricing their exports to take advantage of the low Chinese presence in key markets. Lower prices are expected to increase trading volumes during the interim when Chinese steel exports remain minimal,” an official at an eastern India-based steel mill told SteelOrbis.
“But Chinese steel mills are rapidly increasing production and will be back soon in exporting higher volumes. Export pricing will change soon thereafter. But at present, ex-India HDG volume transactions are not rising despite two price reductions this month, simply because of low demand in the Asian and Gulf regions,” he added.
Market sources said that a western India-based steel mill has concluded an August shipment supply contract for 8,000 mt of HDG with a Dubai trading firm at $512/mt FOB.
It has also concluded an export contract for 5,000 mt with a Bahrain-based trading firm at the slightly higher price of $514/mt FOB also for August, the sources said.
An eastern India-based steel mill has concluded a deal for 10,000 mt of HDG with an Asian buyer at the higher end of the price range at $515/mt FOB, market sources said.