Indian HDG exporters pull back discount sales, nudge prices up

Thursday, 22 July 2021 10:37:10 (GMT+3)   |   Kolkata
       

Indian exporters of hot dip galvanized (HDG) coils have pulled back discount sales seen in earlier weeks and attempted to push up prices slightly, responding to higher ex-China offers, but trading volumes have remained muted, SteelOrbis learned from trade and industry circles on Thursday, July 22.

Ex-China HDG offers are reported to be rising on the back of expected lower outputs, providing a benchmark for Indian exporters to withdraw from discounted sales and nudge up prices, but holidays in key markets like the Gulf and restricted quota availability in the EU have kept most buyers out of the market.

Sources said that local integrated steel mills have increased prices by around $10/mt to levels of $1,060-1,160/mt FOB, and no discounts on offers have been heard in the market.

“There are several key positives in the market. Chinese export prices look like hardening on the fall in output in the second half of the year. Domestic HDG prices in the EU are stable at higher levels, and imports are low and importers are awaiting for next tariff quotas to kick in,” an official at ArcelorMittal Nippon Steel Limited (AMNS) said.

“The lack of trading seen now is temporary and not because of demand dynamics. In the Gulf, a recovery is on the anvil as business activity picks up after the holidays. In the EU, demand is strong and supplies are short. US flat product prices are peaking. India will continue to be a good option for sourcing in the second half of 2021. Sellers are hence taking a call on increasing prices,” he added.

Sources said that, among the limited trades, one deal was heard by a western India-based steel mill at $1,160-1,170/mt FOB with an EU buyer, on expectations that delivery could be delayed until October when it would be eligible for the new tariff quota.


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