Indian HDG exporters successfully push up prices in Gulf on revived buying

Thursday, 26 August 2021 11:11:07 (GMT+3)   |   Kolkata

Indian hot dip galvanized (HDG) coil exporters have been successful in significantly pushing up prices for buyers in the Gulf region, riding on stronger demand and the tightening of supplies, even though activity in other geographies has remained quiet, SteelOrbis learned from trade and industry circles on Thursday, August 26.

Ex-India HDG prices have strengthened by around $50-60/mt to $1,120-1,150/mt FOB, with reports indicating an uptick in demand in the Gulf Co-operation Council (GCC) market and buyers willing to accept higher valuations in the wake of sparse ex-China offers.

“Supplies in the Gulf region are tightening on lower volume availability from Chinese sellers, who are generally refraining from sealing contracts owing to the uncertain export tax. Indian sellers are trying to step in and many are successful in pushing up prices,” a source at ArcelorMittal Nippon Steel Limited (AMNS) said.

“Though demand is seen to be reviving and overall buyers were willing to accept higher valuations, a large section of Gulf buyers are cautious over shipping rates and delivery timelines. Otherwise, trades would have been stronger,” he added.

The absence of buyers from the EU for over the past one month due to the lack of tariff quotas also weighed in on keeping trading activities limited to only the Gulf market, a trader said.

Sources said that a western India-based flat steel producing mill concluded a trade with a Qatar-based buyer at around $1,150/mt FOB.

Another Maharashtra-based steel mill concluded a trade for October shipment with a Bahrain-based trading firm at $1,140-1,150/mt FOB, the sources said.

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