Following six price cuts in recent weeks, Indian HDG exporters have increased their offers by $10/mt week on week to $595/mt FOB, anticipating lower shipments from China, but buyers in key markets have remained cautious and limited fresh bookings to modest volumes, traders said on Thursday, June 27.
“Reports of production cuts in China and expectations that shipments out of China will ease have offered Indian exporters a window to increase offers. However, with demand remaining at low levels in key markets like the Gulf region, it is reported that buyers have only been concluding small-volume bookings and prefer to wait for prices to settle once again,” a Mumbai-based trader said.
“Though not confirmed, there is speculation that at least a few export bookings by Indian traders have been concluded at a discount of $10/mt, which in effect would mean that offers were maintained at a net FOB price level,” the trader added.
Market sources said that, even though small-volume trades have improved slightly, most large Indian steel mills have stayed away from the export market as the increase in offer prices is not yet sufficiently substantial to offset the rising cost of domestic inputs.