Indian HDG exporters improve sales in Gulf at lower prices, EU buying scarce

Thursday, 01 July 2021 15:52:53 (GMT+3)   |   Kolkata

Indian hot dip galvanized (HDG) coil exporters have been successful in increasing sales in the Gulf market but only after lowering prices, while buyers in more remunerative markets like the EU have continued to be reluctant in purchases, SteelOrbis learned from trade and industry circles on Thursday, July 1.

Buying interest in the UAE market has seen a strong rebound on the back of rising demand during the past week, but buyers have only been concluding deals for ex-India HDG at prices significantly lower than offers. The sources said that, against ex-India offers at $1,200-1,250/FOB, deals were heard to have been concluded at $1,000-1,050/mt FOB, although booking volumes improved compared to earlier weeks.

“Actual users and trading firms in the Gulf Cooperation Council (GCC) region have come out strongly to commit fresh bookings as inventories have fallen. But the Gulf market is very price-sensitive and deals are concluded at competitive prices,” an official at a western India-based exclusive flat product producer said.

“Buying sentiments in Europe has been impacted by the EU decision to extend steel import safeguards by three years without any increase in the quantitative ceiling either. We learn that EU-based steel distributors are still reassessing the situation and awaiting the authorities’ reaction to their opposition to the safeguard extension,” he added.

Sources said that a Maharashtra-based steel mill is heard to have concluded a deal to a Qatar-based trading firm at a price of around $1,020-1,030/mt FOB for September delivery.

The same steel mill also reported a trade with a Bahrain-based steel distributor at a price of around $1,050/mt FOB.

Another deal heard was by an eastern India-based integrated steel mill with a buyer from the UAE at around $1,030-1,050/mt FOB, the sources said.

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