Indian hot dip galvanized (HDG) coil exporters have continued dropping prices, taking them to below the $1,000/mt FOB mark but buyers in key destinations like the Gulf region retreated and the semblance of trade activity was sustained by small deals emerging from a few African countries, SteelOrbis learned from trade and industry circles on Thursday, June 23.
Ex-India HDG offers have been reduced to $990-1,000/mt FOB, down by $10/mt on the lower end and down $30/mt from the higher end of the range reported last week. While some offers have still been at $1,030/mt FOB, most trades have been reported at the lower side.
“No buyer in the Gulf wants to commit a trade in a free-falling market. Ex-China prices are tumbling. Indian mills are reducing prices but with less aggression considering higher costs, but are still failing to conclude deals,” an official at a private integrated mill said.
“The drying up of deals in the Gulf is concerning. With ex-China HDG prices reported to be at a 16-month low, it is difficult for Indian mills to find alternatives,” he said.
Sources said export trade activity was kept “alive” by small-volume deals like the one reported by an eastern India-based mill for 8,000 mt with a buyer in Nigeria at $980-1,010/mt FOB for August shipment.
Another deal was reported by an integrated flat steel producer for 12,000 mt with a buyer in Egypt at $990-1,000/mt FOB, also for August, the sources said.