Indian hot dip galvanized (HDG) coil exporters have increased prices by around $10/mt to $560-565/mt FOB, but trades have been limited by low demand in key markets like the Gulf Co-operation Council (GCC).
According to traders, the hike in ex-India HDG prices is more to align them with rising domestic and export prices of hot rolled coil (HRC), and exporters have not been aggressive in pushing HDG volumes overseas at discounts as demanded by some buyers as a pre-condition before responding to offers.
Nevertheless, a few bookings have been reported in the market at higher levels over the past week. Sources said that a western India-based integrated steel mill has sold an estimated tonnage of 12,000 mt to a Dubai-based trading firm for October shipment at around $560/mt FOB.
Another western India-based mill has reportedly contracted a deal for around 8,000 mt with an EU buyer at the highest price of the week of around $565/mt FOB, the sources added.
“Indian exporters have increased export prices largely driven by the rise in the price of ex-China HDG. Buyers in Southeast Asia have stayed away from responding to offers. In the GCC markets, prices have been rising but demand is still at a low ebb, preventing buyers from concluding large-volume bookings,” an official at a steel mill told SteelOrbis. “However, a positive sign is the sustained buying interest from the EU even though the tonnages booked are still at a low level,” he added.