Indian hot-dipped galvanized (HDG) coils exporters have been able to slightly revive sales offering discounts to overcome slowdown in Gulf region owing to holidays ahead and soft pricing cues in the EU region, SteelOrbis learned from trade and industry circles on Thursday, July 15.While buyers in the Gulf Co-operation Council (GCC) market have remained quiet ahead of holidays some buyers were willing to conclude deals at ‘the right price.’
Hence with domestic demand also trending weak, pushing volumes overseas has been a key for inventory management for local integrated steel mills which kept export offers at the range of $1,050- 1,150/mt FOB.
“Prices are showing varying trends in key markets for different reasons. In the Gulf acceptable price is stable but buyers are tending to defer trades after the holidays. However, in the EU region, local price is seen to be decreasing, but imports are still on the lower side,” an official with ArcelorMittal Nippon Steel Limited (AMNS) said.
“Fresh pandemic wave is several EU countries over the past week is creating nervousness. Some countries like the Netherlands have re-imposed lockdown restrictions. Traders and user industries are preferring to wait and watch how risks unfold,” he added.
Sources said that a western India-based integrated steel mill reported a deal of around 12,000 mt with a Gulf-based trading firm at a price of around $1,067-1,070/mt FOB net of discount of around 3 percent on offer price.
An eastern India-based steel mill also was heard to have concluded a trade for around 10,000 mt with a Bahrain-based buyer at price of around $1,127/mt FOB, net of 2 percent discount on offer price, the sources added.