Indian hot dip galvanized (HDG) coil exporters have attempted to sustain low-level trade activity by further dropping prices, with modest success in the Gulf region, with buyers largely heard to be rejecting offers above the $1,000/mt FOB mark, SteelOrbis learned from trade and industry circles on Thursday, June 16.
Ex-India HDG prices were lowered by $20/mt to $1,000-1,030/mt FOB, but most of the small-volume deals for the Gulf destination have been at the lower end of the range.
“EU buyers are completely out of imports and offers are not finding any response. Gulf demand is weak and buyers are bargaining hard and seeking prices around the $1,000/mt FOB mark on the basis that hot rolled coil (HRC) prices in India have collapsed and that prices which are too high from exporting mills are not workable,” an official at a private mill said.
“The only positive is that Gulf buying is sustaining although at lower price and volume levels. Considering pressures from inventories, any overseas sales are a positive. However, we do not see a price rebound immediately with ex-China futures and physical prices softening,” he said.
Sources said that an eastern India-based mill has reported a deal to a UAE-based importer at $1,000-1,020/mt FOB for July shipment.
A deal was reported for 5,000 mt by a Saudi Arabia-based buyer at around $1,000/mt FOB, but the seller was not confirmed in trade circles.
