Indian integrated steel mills have maintained their hot dip galvanized (HDG) coil export prices in the range of $530-535/mt FOB due to a pause in bookings from the EU, but exporters hold a positive outlook regarding the revival of demand, SteelOrbis has learned on Thursday, June 11.
According to traders, trading volumes have been less than in the previous week in view of EU buyers taking a pause from concluding contracts, while deals in the Gulf and Asian regions have been limited to modest volumes.
In the Gulf Co-operation Council (GCC) region, buyers have been cautious in view of sluggish local demand and importing traders have also limited their transaction volumes. Market sources said that a western India-based steel mill has concluded a 12,000 mt booking for end-of-August delivery at $532/mt FOB with a Dubai-based trading firm.
The same steel mill was also successful in concluding a supply contract for an estimated volume of 10,000 mt with a Singapore-based trading firm in the price range of $530-532/mt FOB, the sources said.
“The fall in volume is largely temporary and expected to recover as the pace of resumption of manufacturing gains momentum. The downside risk to prices is also limited with prices increasing for ex-China HDG. Also, Chinese exports are slow in key markets like the EU and Asia, prompting Indian exporters to hold prices,” an Indian producer and exporter told SteelOrbis.
“Competitive pressures on prices, however, can emerge from local exporters in the form of discounts to buyers as more Indian integrated steel mills begin to focus on exports and discounting will enable them to push higher volumes overseas,” he added.