Barring stray small-volume deals at discounts, Indian hot dip galvanized (HDG) coil exports have lapsed into a moribund state amid tariff quota uncertainties in the EU market and sellers unwilling to accede to the further price discounts demanded in the Gulf region, SteelOrbis learned from trade and industry circles on Thursday, July 8.
Sources said that, in view of the sharp weakening of hot rolled coil (HRC) prices across Gulf Cooperation Council (GCC) countries, buyers were seeking further cuts in price to conclude HDG deals but local sellers were unwilling to go below the $1,050/mt FOB mark, after having reduced prices to such a level a week ago.
Alsoo, sources said that realization opportunities in the EU region were higher but buyers have been cautious after tariff quotas for July-September were reported to have been completely exhausted and the market was in the stage of reassessing concluding imports at 25 percent higher tariffs even though supplies remained extremely tight.
“Flat steel prices are softening in key markets except for the EU. But sentiments in the EU too are weak not because of demand but owing to the continuation of import tariff quotas without any increase in volume ceilings. This will limit Indian exporters’ increasing exposure in this market,” an official at a private flat steel producing integrated steel mill said.
“With the Gulf region also showing a slowdown in demand, I would feel that Indian mills will have lower export allocations for July-September shipments,” he added.
Sources said that among the stray deals reported in the market was a contract for 8,000 mt concluded by a Gujarat-based steel mill with a Bahrain-based steel trading firm at $1,050-1,100/mt FOB.