The workable price level for Indian hot dip galvanized coils (HDG) has remained at $790-810/mt FOB, but bids have declined in reaction to lower offers from Chinese sellers. Most offers of Indian mills are still at much higher levels as they have not been willing to export any sizable volumes, seeing a strong local flat steel market in India.
While Indian integrated steel mills have been in no hurry to conclude deals at lower prices,at least one exporter is heard to have finalized a supply contract with a EU-based buyer with some discounts, though this was not officially confirmed by the seller.
At the same time, in another key market, the Gulf Co-operation Council (GCC), buyers were seeking higher discounts of at least $20/mt, but sellers did not respond to lower bids, market sources said.
“With domestic steel prices poised to rise further in the current month, particularly benchmark hot rolled coils (HRC), exporters are not willing to rush into contracts at lower prices,” an official at ArcelorMittal Nippon Steel (AMNS) said. “I do not think discounted sales are an option for any local steel mill. The current currency exchange rates do not offer a possibility to lower prices in dollars,” he added.