Indian hot dip galvanized (HDG) exporters have maintained their prices stable, supported by strong local hot rolled coil (HRC) prices, though overseas trades continued to be elusive from a lack of any price direction in key markets in the Middle East, SteelOrbis learned from trade and industry circles on Thursday, November 4.
Sharp declines were heard in ex-China prices, but Indian mills have refrained from any adjustment in reaction to China and instead have maintained prices at $1,130-1,140/mt FOB despite a lack of any successful trades over the past week.
“Buyers in the Middle East market are in wait-and-watch mode expecting overall price declines after a fall in ex-China prices. Buyers are seeking deals at $1,100-1,110/mt FOB, but this is not viable for sellers, taking into account current local HRC sales realizations,” a source at an eastern Indian flat steel producing integrated steel mill said.
“There are two contrarian pulls on price expectations. A section of buyers expects further declines in the wake of weak Chinese prices. On the other side, Indian prices are gaining strength. Buyers in the UAE are preferring to wait and watch which side prevails in setting the pricing direction,” the source said.
The only stray deal was reported during the past week for a small tonnage of 8,000 mt by an Odisha-based steel mill with a Saudi Arabian buyer at a price of around $1,130-1,140/mt FOB, which market sources attributed to efforts to maintain a market presence with a long-term buyer.