Indian hot dip galvanized coil (HDG) exporters have hiked prices to align them with the recent upward revision of hot rolled coil (HRC) prices effected earlier this month, even though muted trading conditions have been seen in the market and buyers are on the sidelines waiting for prices to find lower levels, SteelOrbis learned from trade and industry circles on Thursday, October 14.
Ex-India HDG prices are up to $1,130-1,140/mt FOB compared to $1,110-1,130/mt FOB a week ago. But exporting mills were not seen to be pushing trades owing to the fall in business activity during the week because of festivals and only modest-volume trades have been reported from the Gulf region.
Trade circles said that ex-India HDG at higher prices have largely been rejected in the Gulf region, where prices are trending lower and buyers are preferring to wait for a new bottom.
However, in the case of Indian mills an upward adjustment of HDG prices is necessary to maintain the price differential with HRC, after mills increased base prices of the latter earlier in the month.
Sources said that a western India-based exclusively flat steel producing mill has reported a trade at around $1,130-1,135/mt with a Middle Eastern buyer.
