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.
