Indian integrated steel mills have increased their hot dip galvanized (HDG) export prices by $10/mt to $570-580/mt FOB to align them with higher prices of hot rolled coils (HRC), but export trading activity has almost become silent during the past week amid the absence of a demand uptick in key markets.
While integrated steel mills are increasing export prices in tandem with higher local HRC prices and to offset the impact of the appreciating local currency, the higher prices have not been acceptable to buyers in the absence of any revival in demand in key markets like the Gulf Cooperation Council (GCC) and Southeast Asia.
Exporting integrated steel mills have not been aggressive either in pushing volumes overseas against the backdrop of strong domestic demand for HRC and lower conversion and allocation for HDG exports, sources told SteelOrbis.
Sources said that a western India-based steel mill concluded a modest volume trade of around 8,000-10,000 mt to an EU-based trading firm at around $570-575/mt FOB, in a deal which according to the sources was negotiated through the European affiliate of the Indian steel mill.
A Maharashtra-based steel mill has reportedly concluded a small deal with a GCC-based trading firm at around $570/mt FOB, market sources said.
“Exporters are increasing prices to align them with rising domestic prices. There is no aggressive sales push overseas as incentives from exports have diminished due to the strong local currency and higher realizations from local sales. Overseas buyers also do not see strong demand to absorb higher import prices either,” an official at a private integrated steel mill said.