Indian hot dip galvanized (HDG) coil export activity has increased during the past week amid the uptick in demand in the key Gulf Cooperation Council (GCC) markets and, while export prices have been maintained in the range of $510-515/mt FOB, bids received from buyers have been lower and deals have only been concluded with discounts in the range of $3-5/mt on FOB basis, SteelOrbis learned on Thursday, July 2.
Market sources said that a western India-based leading flat product producer has concluded a deal for an estimated volume of 10,000-12,000 mt for September deliveries with a Dubai-based trading firm at $502/mt FOB, net of discount.
The same steel mill has also concluded a small-tonnage deal for 8,000 mt with an Asian buyer at the slightly higher price of $508-510/mt FOB net of discount, also for September, market sources said.
A Maharashtra-based integrated steel mill has reported a deal for 5,000 mt at a price of around $509/mt FOB with a Bahrain-based source, the sources said.
“Gulf buyers are more active but most are putting in bids that translate to lower than the $490/mt mark on FOB basis. This has restricted several inquiries from being converted into deals. Local exporting steel mills are willing to discount to conclude deals, but the floor price is not much below the $500/mt mark,” an official at a western India-based private steel mill told SteelOrbis.