Indian exporters of hot dip galvanized (HDG) coils have largely maintained their offers unchanged during the past week at $560-565/mt FOB, but at least one large domestic steel mill has attempted to push up prices by concluding two deals at higher levels, traders said on Thursday, January 23.
According to the traders, a steel mill has concluded deals at higher levels supported by strong domestic prices of hot rolled coil (HRC) and lower availability of thinner gauge HRC for conversion into zinc-coated flat products.
A western India-based steel mill has concluded a deal at $570/mt FOB with buyers in the Gulf for March delivery and a second cargo also at the same price for delivery to buyer in Asia, although the volumes in the deals could not be confirmed in the market.
However, despite the two deals reported at higher levels, the sources said that buying in key markets like the Gulf Co-operation Council (GCC) region has remained cautious and buyers are awaiting a definitive price trend to emerge once Chinese exporters resume full business activity after the Lunar New Year holidays.
“A few stray deals are not yet a trend, because most large steel mills are maintaining offers despite low activity and buyers in the Gulf unwilling to conclude transactions, preferring prices to find a definitive direction. Local steel mills are getting good realizations from local sales of HRC after consecutive base price hikes and lowering their captive conversion of value addition and no compulsion to push higher HDG volumes overseas unless offers consolidate at higher levels,” a manager at an eastern India-based steel mill said.
