Indian exporters of hot dip galvanized (HDG) coils have maintained their offers unchanged during the past week, but have pulled back discounts and have been able to conclude deals at higher levels compared to earlier weeks on the back of higher volumes of inward shipments in key markets like the Gulf and a few Southeast Asian countries.
According to market sources, most large exporting Indian steel mills have maintained offers at around $555/mt FOB but have withdrawn discounts of $8-15/mt seen in earlier weeks and most deals concluded have been at higher levels as buyers in key markets were restocking and willing to conclude deals at higher prices.
“Buying interest saw a considerable uptick in the Gulf Co-operation Council (GCC) region and Indian exporting steel mills were able to conclude deals supported by lower activity among Chinese steel mills ahead of the Chinese Lunar New Year,” a Mumbai-based trader said.
“Local steel mills are making healthy margins on HDG exports from a combination of withdrawal of discounts and the steady weakening of the Indian rupee, which is firmly consolidating at INR 71.40 to the US dollar, increasing realizations from the exchange rate,” he added.
Market sources said that a western India-based steel mill concluded two contracts for an aggregate volume 14,000 mt at $554.5/mt FOB for the first and at the slightly higher level of $556/mt FOB for the second, both for early March delivery to Gulf.
An eastern India-based steel mill reportedly concluded an export contract for early March delivery to Malaysia of 7,000 mt at around $554/mt FOB, SteelOrbis has learned.