Indian export prices of hot dip galvanized (HDG) coils have been maintained during the past week at $565-570/mt FOB with limited small-volumes trades concluded in the Gulf region, while most buyers have preferred to defer any fresh bookings, SteelOrbis learned on Thursday, February 20.
According to the traders, there are different expectations among buyers, particularly in key markets like the Gulf Cooperation Council (GCC), with one section anticipating an increase in offers from the cost pressure on exporters, while another section expects prices to soften as demand has fallen in China with the spread of the coronavirus yet to be contained in that country.
Buyers in the Gulf as well as in Southeast Asia have stayed away from large-volume bookings as a lot of uncertainty has emerged over delivery schedules from disruptions in shipping lines and vessel arrivals at ports.
Market sources said that a western India-based steel mill has concluded a relatively small volume contract in the Gulf for end-of-March delivery of 7,000 mt at the lower end of the price range at $566/mt FOB, although at least two traders believe that the deal was concluded only after an additional discount.
“On one hand buyers are waiting for new prices to emerge in reaction to the still uncertain demand forecast in China and volumes on offer in key destination markets. On the other hand, Indian steel mills are under no compulsion to aggressively push volumes overseas as they are getting good realizations from local sales. Hence the lack of trading activity and only low-volume deals fructifying over the past week,” a manager at JSW Limited said.