Indian mills have cut their hot dip galvanized (HDG) coil export prices, attempting to support low-level buying from the Gulf and select African countries, SteelOrbis learned from trade and industry circles on Thursday, June 9.
Ex-India HDG prices are down to $1,020-1,050/mt FOB with the midpoint at $1,035/mt FOB, showing a sharp drop of $80/mt from the average price level last week. Though this is a significant drop from official offer levels seen over past weeks, the sources said that deep-discounted deals signal that Indian exporters do not have any other choice but to cut prices to more realistic levels.
According to an official at a western Indian private integrated mill, demand in the UAE and Saudi Arabia has been a slight improvement, but buyers are extremely price sensitive.
Indian mills have been drastically reducing prices to maintain a market presence, but there are doubts whether current deal prices have ensured positive margins from exports, considering higher costs of production vis-à-vis ex-China products.
Sources said that small-volume buying from Nigeria and Egypt over the past week ensured improved trading activity, though sentiments among sellers have remained negative over its sustainability.
A private mill in the west reported a trade with a buyer in Saudi Arabia at around $1,020-1,050/mt FOB. The same mill also concluded a deal with a Nigeria-based importer at $1,050/mt FOB, the sources said.
An eastern India-based private mill was heard to have concluded a trade with a buyer in Egypt at $1,030-1,040/mt FOB, sources said.
