Indian hot dip galvanized (HDG) coil exporters have attempted to increase prices in comparison to prices in the rare trades reported last week, but the market has remained weak amid the further widening of spreads between offers and bids, SteelOrbis learned from trade and industry circles on Thursday, August 4.
Ex-India HDG prices of 0.5-1 mm and 220-275 gms coating have been at $900-920/mt FOB, up from the tradable levels of $850-900/mt FOB reported last week, but down from the previous official offers voiced at $950/mt FOB.
Moreover, additional discounts are reported to be possible, and so mills were still considering to sell at $870-880/mt FOB, but even the limited Gulf buying seen earlier dissipated with buyers unwilling to accept any valuation above $800-820/mt FOB, resulting in inactive market conditions.
“Indian exports are not competitive even after discounts. It needs to be pointed out also that only a few mills are able to offer the high discounts sought by Gulf buyers,” an official at a private mill said.
“We are seeking destination markets completely divided between those claiming prices to have bottomed out and those expecting further declines. Either way, export pricing is a challenge. Hence, buyers are quiet and local mills are cutting back rolling outputs and export allocations,” he said.
According to an analyst with a Mumbai-based financial services firm, the current differential between local hot rolled coil (HRC) prices and realizations from HDG sales overseas is at a two-year low and offers only nominal returns for mills adding value through upstream rolling.
