Ex-India hot dip galvanized (HDG) coil offers have been maintained unchanged during the past week, but trading activity has been almost negligible in view of low business activity in the Gulf region and India’s quota being nearly exhausted in the EU market, SteelOrbis learned from trade and industry circles on Thursday, April 15.
Sources said that Indian integrated steel mills have maintained their offers in the range of $1,010-1,050/mt FOB and the tradable level has remained at $1,020-1,030/mt FOB. The sources said that, even though Indian exporters have been leveraging the weak local currency, currently at a nine-month low against the US dollar, to maintain prices and be competitive, no deals were heard in the market.
According to the sources, business activity in the Gulf region was seen to be tapering off with the start of Ramadan, while EU buyers have been hamstrung in concluding deals despite continuing shortages, as quotas for shipments from India have almost dried up.
“Sellers are bullish on prices in the medium and long term, while buyers in key markets have hit the pause button. But the pause is largely owing to extraneous factors and demand for ex-India HDG remains positive and it is only a matter of time before volumes get back on an uptrend,” an official at ArcelorMittal Nippon Steel Limited said.
“As long as overseas demand for ex-India HRC is sustained at the current high prices, Indian mills do not need to worry about small product-wise shifts in trading volumes. These are short-term variations and local mills are adjusting export allocations product-wise to stay on top of a rising market,” he added.
