Indian integrated steel mills have increased hot dip galvanized (HDG) coil export prices to align them with recently hiked hot rolled coil (HRC) prices in the local market, even though Gulf buyers were seeking lower prices to conclude bookings, SteelOrbis has learned from trade and industry circles on Thursday, August 5.
The lower end of ex-India HDG prices has been pushed up by $10-20/mt to $1,070-1,080/mt FOB over the past week even as market reports indicated that a number of Gulf-based buyers rejected deals at the higher prices. The higher end of the range of ex-India HDG prices is still at $1,160/mt FOB. This price level seems to be mainly indicative, but, as China is going to increase prices soon, Indian mills expect to reach deals at higher prices soon.
Sources in trade and industry circles claimed that, even though demand and prices in key markets like the Gulf showed weakness, sellers have maintained a positive outlook and expect higher prices will become acceptable in the wake of ex-China offers being rejected after the rebate cuts.
“The market is a little weak in the Gulf and activity in the EU is slow as buyers await new tariff quotas next month. But these are short-term variations as the market is re-balancing after the export rebate cuts on ex-China contracts,” an official from a private steel mill said.
“The aggregate fall in finished steel shipments from China following rebate cuts will enable prices to consolidate at higher levels. Despite buyers stalling deals, the days of cheap prices are over for the medium and long term, barring technical market corrections,” he said.
Sources said that the latter mill with operations in western India has reported a trade of an estimated 12,000 mt at around $1,090-1,100/mt FOB for October shipment.
A private steel mill based in Jharkhand in the east is heard to have concluded a deal for 15,000 mt with a EU buyer at a price of around $1,080-1,090/mt, with the provision of delayed loading in October, the sources said.