Indian export offers for hot dip galvanized (HDG) coils have remained stable during the past week at $505/mt FOB amid continued modest booking volumes by buyers in the Gulf region, while domestic steel mills have not been pushing for export deals too aggressively, anticipating that prices in key overseas markets are likely to revive over the next few weeks, traders said on Thursday, October 31.
The traders said that there has been a slight revival of buying of ex-India HDG with prices remaining stable and buyers anticipating a rise in landed prices, although average volumes of contracts have remained at modest levels.
“Sentiments in most markets like Europe and Southeast Asia are that finished steel prices might have bottomed out. This, together with the expected slight fall in production by Chinese steel mills during the winter months, is expected to help reverse the prolonged downtrend in prices. Hence, most local steel mills are not aggressive in concluding contracts immediately and prefer to wait to push higher volumes overseas once an uptrend in prices become clearer,” a Mumbai-based trader said.
“Chinese steel mills are seen to be lowering offerings in export markets as their domestic market is more lucrative. Large Indian steel mills are waiting for a slight revival in prices before starting to aggressively push volumes overseas, now that the downtrend in prices seems to have been checked,” he added.