Indian HDG exporters maintain prices amid poor trading, but expect strong rebound

Thursday, 29 July 2021 15:54:31 (GMT+3)   |   Kolkata

Indian hot dipped galvanized (HDG) coils exporters maintained prices, but trading conditions turned moribund in absence of any buying interest from the EU region and business activity continuing to remain low key in the Gulf, SteelOrbis learned from trade and industry circles on Thursday, July 29.

Ex-India HDG prices were maintained at $1,060-1,160/mt FOB as buyers in key markets preferring to wait for current bearish price trend to gain momentum, while sellers were waiting for the rebound, supported by China in August.

The sources said that EU buyers are unwilling to commit fresh bookings as a lot of seaborne material are stuck up with buyers waiting for new export tariff quotas to kick in. Recent price stability in local flat product prices particularly in northern Europe is also keeping import interest at low levels.

However, despite the weak buying sentiments in key markets, Indian sellers are not willing to rush to adjust prices as China cancelled export tax rebate on HDG and this may push prices in the Asian market up, at least two traders said.

“Low buying interest in key markets are short term. But pricing outlook and export offers are very positive in the medium and long term. Chinese steel in the foreign market at very low prices seems to be nearing end. If Chinese mills are to keep their aggregate output at 2020 levels there will be sharp drawdown in material flowing into foreign markets,” an official with a private Indian integrated steel mill said.

“We hear Chinese steel exports in May at 5.27 million mt down from 7 million mt during previous consecutive months. Any loss in exports by China is India’s gain. Hence there is little rush in changing ex-India prices at time when global steel export dynamics are slated to change dramatically in the coming months,” he said explaining unchanged ex-India HDG prices.

Sources said that only deal of the week was a booking reported by a Gujarat based steel mill at $1,150-1,160/mt FOB to the Middle East.

Similar articles

Romanian flats producer keep prices stable, local traders raise offers

31 Mar | Flats and Slab

Japan’s steel exports up 2.6 percent in January-February

31 Mar | Steel News

Ex-India HDG prices rise amid domestic prices, improved trade environment

30 Mar | Flats and Slab

Ex-China HDG offer prices stable, some optimism reappeared

30 Mar | Flats and Slab

Flat steel prices in local Taiwanese market - week 13

30 Mar | Longs and Billet

US HDG imports down 17.4 percent in February

28 Mar | Steel News

Coated prices dip further in Turkey, CRC offers stable so far

28 Mar | Flats and Slab

US HDG prices still ticking upward as buyers question rising pricing levels

27 Mar | Flats and Slab

Japanese crude steel output down 4.3 percent in Feb from Jan

24 Mar | Steel News

Ex-India HDG prices stable, but trading pauses as buyers reassess high prices

23 Mar | Flats and Slab