Indian hot dip galvanized (HDG) exporters have maintained export prices during the past week but, barring a few stray deals in the EU region, the price hikes made in earlier weeks have faced resistance in key markets like the Gulf where lower-priced ex-China HDG has attracted greater acceptance, traders and officials at integrated steel mills have said.
After hiking ex-India HDG export prices to a range of $570-580/mt FOB and maintaining them despite the softening of ex-China prices, buyers in key markets like the Gulf have been seeking valuations below $600/mt on CFR basis and hence few trades have been reported during the past week.
However, market sources said that stray deals of modest volumes were concluded during the week mostly in the EU region. A western India-based steel mill concluded a trade for an estimated tonnage of 8,000 mt with an Antwerp-based trading firm at a price of around $575/mt FOB for November delivery.
Another western India-based integrated steel mill concluded a trade for 10,000 mt with a EU-based buyer at around $570/mt for November delivery, the sources added.
“Local exporting steel mills are reluctant to lower prices as the spread between hot rolled coil (HRC) and HDG had widened after producers significantly increased local HRC prices. Mills are also not keen on aggressively pushing HDG volumes overseas in view of high realizations from HRC sales and lower captive conversion to HDG,” an official at ArcelorMittal Nippon Steel told SteelOrbis.
