Indian hot dip galvanized (HDG) export activity has fallen silent over the past week with buyers unwilling to accept higher prices, while sellers have not been in a position to adjust offers amid strong prices of hot rolled coils in the local market, SteelOrbis learned from trade and industry circles on Thursday, October 21.
Ex-India HDG prices have been maintained at $1,130-1,140/mt FOB after mills factored in the recent hikes in prices of HRC, but buyers in the Gulf region were heard to be resisting higher prices, resulting in a “stalemate between buyers and sellers.”
The only deal reported in the market over the past week was for a modest volume of 8,000 mt for December shipment to a Gulf-based buyer at price of $1,130/mt FOB, the sources said.
“Exporters have no option but to pass on cost inflation to consumers. While this is being absorbed in the local market amid reviving demand, key overseas buyers in the Gulf are only willing to strike a trade at $20-30/mt lower given relatively weak demand and the slow movement of stocks for extended periods,” a source at ArcelorMittal Nippon Steel (AMNS) said.
“Exporters are not rushing to ship overseas. The export market environment will change in November-December once EU buyers become active after getting clarity on export tariff quotas. Until such time, we assess that flat product exports will remain low-key,” the sources said.
