Indian hot dip galvanized coil (HDG) exporters have attempted to push up prices for the second consecutive week despite the slowdown in trading activity in the key Gulf region market, but an optimistic outlook and the lack of ex-China offers because of export tax uncertainty would cause buyers to resume ex-India purchases, SteelOrbis learned from trade and industry circles on Thursday, September.
Ex-India HDG prices have risen slightly by $10/mt over the past week to $1,130-1,160/mt FOB amid cautious sentiments among buyers who have been waiting for the China export tax issue to play out and assess its impact on prices.
According to sources, while volumes and trading activity in the Gulf Co-operation Council (GCC) region has remained subdued, a few stray deals have been reported by at least two Indian steel mills with buyers in South Africa at prices averaging $1,130-1,140/mt FOB, though details of tonnages were not available.
An eastern region-based integrated steel mill has concluded a deal for 12,000 mt with a Middle East-based buyer at around $1,150-1,155/mt FOB, sources said.
“Buyers in the Gulf are uncertain because China is yet to make an announcement on the export tax issue, which was expected on September 1. Buyers are deferring deals until there is clarity on ex-China offers,” a steel sector analyst from a financial services firm said.
“Indian mills for their part are bullish that any export tax on ex-China material would be a strong positive for them as volumes on offer in key markets will fall and support higher prices. Ex-India HDG prices are being pushed up on the back of hope rather than current demand,” he added.