Indian integrated steel mills have maintained their hot dip galvanized (HDG) coil export prices at higher levels, but no deals have been heard in the market during the past week amid low business activity in the Gulf region and no EU quota available immediately for ex-India shipments, SteelOrbis learned from trade and industry circles on Thursday, April 22.
Sources said that ex-India HDG offers have been maintained at higher levels of $1,010-1,050/mt FOB and the workable level for deals is still at $1,020-1,030/mt FOB, but there has been a lack of any kind of response from the Gulf region where buyers have preferred to wait out their shortened business hours and see a new price trend emerge before making commitments.
The sources said that offers for ex-China HDG are back in key markets like the Gulf with sellers factoring in possible rebate cuts into prices, but despite higher availability buyers have been reluctant to make fresh bookings immediately.
“Local integrated steel mills are unlikely to rush into cutting prices to drive volumes. Instead, with the shortage in key markets expected to continue, sellers will tide over the lack of business in the short term and wait for the new quota to kick in in the EU region,” an official from ArcelorMittal Nippon Steel Limited said.
“Indian offers are still very competitive as ex-China offers are coming at higher levels inclusive with the expected rebate cuts. So, we expect the lull in activity to be short-lived,” he added.
