Indian hot dip galvanized (HDG) coil exports have remained completely inactive over the past week with buyers expecting prices to move down further amid nervous sentiments following the slump in steel futures in China, while local mills are unwilling to lower prices due to high domestic demand and high prices of flat products, SteelOrbis learned from trade and industry circles on Thursday, October 28.
Despite falling prices in key markets like the Gulf, Indian exporters have steadfastly maintained prices at $1,130-1,140/mt FOB and no deals were heard in the market as sellers were not interested in adjusting prices and pushing volumes overseas given the strong local hot rolled coil (HRC) market, sources said.
“Overall flat steel imports into the Gulf region are falling from low demand and expectations of a new bottom emerging following the weakening of prices in China,” a source at ArcelorMittal Nippon Steel Limited (AMNS) said.
“Domestic demand for HRC is reviving very fast and prices are at a historic peak level. So, unless there are strong realizations for value-added products like HDG from overseas sales, mills prefer to stay away for trades. Our assessment is that HDG prices need to appreciate by at least 15-20 percent from current levels to make exports viable as all mills are facing an inflationary cost-push,” the source said.