Indian hot dipped galvanized (HDG) coil exporters started increasing prices over the past week to align it with increased hot rolled coil (HRC), while buyers decline to commit bookings resulting in no deals confirmed in the market, SteelOrbis learned from trade and industry circles.
At least two mills increased ex-India HDG prices by $10/mt to $850-860/mt FOB, but offers at as high as $900/mt FOB have also been seen in the market. But soft demand in key destinations like the Gulf and Europe prompted buyers not to respond to higher offers.
“It is a challenge for both buyers and sellers to find a direction in the current market conditions. On one hand, prices are rising across western markets reacting to energy cost surges. This has risks of depressing demand further as end use industries are also planning output cuts. But higher prices in the west also increases ex-India competitiveness. It is difficult to forecast which way the trend will flow and hence both buyers and sellers are on wait and watch,” a source in a large mill said.
“Local sellers are tending towards a positive outlook considering some mills in Europe are closing operations and end use buyers expected to look at India sourcing in the medium term. But in the short term, we do not expect ex-India prices to show much movement,” the sources said.