Indian hot dip galvanized (HDG) coil exporters have maintained prices unchanged, but have only been able to achieve deals in Gulf markets at discounts in view of weak demand and buyers expecting a softening of prices coupled with slow progress in negotiations with EU buyers for January deliveries, SteelOrbis learned from trade and industry circles on Thursday16, September .
Ex-India HDG prices have been maintained at $1,140-1,170/mt FOB, but deals in Gulf markets have been heard at $10-15/mt lower as buyers have been reluctant to place large orders, anticipating prices would flatten out.
At the same time, some local integrated mills, which had commenced supply contract negotiations with EU buyers for deliveries for January and beyond when import tariff quotas would be available, reported a slowdown in progress, sources said.
They said that EU buyers have been inclined to defer committing to contracts in view of the weakening of demand from the auto sector and HDG prices seeking lower levels making January forecasting a challenge.
Sources said that an Odisha-based integrated mill has reported a deal for around 8,000-10,000 mt with a Gulf-based end-user at $1,140-1,150/mt FOB, against an offer of $1,170/mt FOB.
“Current exports are more in the nature of maintaining a market presence in the key Gulf region. Even though we hear stocks are down, Gulf buyers are only concluding deals at the “right price” as demand is weak,” sources at ArcelorMittal Nippon Steel Limited (AMNS) said.
“Overall the HDG market is in transition. The expected resumption of buying from the EU is likely to be delayed and ongoing talks between buyers and sellers are being deferred, with the latter preferring to wait for a definite price trend to emerge,” he added.