Indian hot dipped galvanized (HDG) coil exports have lapsed into inactivity with sellers maintaining prices unchanged, but uncertain demand in key destinations such as the Gulf and the EU has kept buyers from responding to offers, SteelOrbis learned from trade and industry circles on Thursday, September 29.
Ex-India HDG offer prices have been maintained at $860-880/mt FOB and the tradable level was also stable at $850-880/mt FOB, with the midpoint at $865/mt FOB. Though still remaining competitive for some customers, distributors in the Gulf and EU have been unwilling to restock, considering fears of recessionary conditions and weak demand from end-users like automobile manufacturing.
The sources said that local Indian mills have been pulling back from discounted deals as in previous week, largely because of tightening supplies of hot rolled coil (HRC) in the domestic market and rising price realizations from local sales.
“Most mills are reducing output of HDG owing to lower availability of HRC. Demand from domestic passenger car makers for their export production is sufficient to keep a lower volume of HDG output moving,” an official at a private mill said.
“Most overseas markets are unsettled and buyers lack confidence in the outlook. But Indian mills are better placed to hold prices and refrain from matching lower bids and discounted sales,” he said.
