Indian export offers for hot dip galvanized (HDG) coils have been maintained unchanged during the past week at $505/mt FOB amid limited trading activity although a few deals have been concluded with buyers in the Gulf region at discounts, SteelOrbis has been informed.
According to the traders, import prices have been falling in the Gulf Co-operation Council (GCC) region in response to cuts in ex-China offers and at least two western India-based steel mills were able to conclude deals for moderate volumes although only after offering discounts of 10-15 percent.
“HDG and coated steel product prices have fallen sharply during the past week, as most exporting producers are adopting aggressive pricing. Indian steel mills are not very focused on HDG exports having already reduced HDG production in their total product portfolio in view of limited domestic demand and only limited shipment volumes overseas,” a Mumbai-based trader said.
“The discounted deals concluded during the past week have been more of an aberration as most large mills will not be able to sustain discounts as their production costs continue to remain high. I would presume the discounted deals were more in the nature of maintaining a market presence with buyers,” the trader added.