Indian exports of hot dip galvanized (HDG) coils have continued to remain in limbo and revival prospects have been further dimmed by the sharp fall in acceptable prices in the Gulf market, while Indian sellers have not ready been to adjust offers, SteelOrbis learned from trade and industry circles.
Ex-India HDG offer prices have been at $1,110-1,140/mt FOB on nominal basis as no deals were reported in the market. Sources said that, with local hot rolled coil (HRC) still strong despite the mild recent correction, spreads with HDG export prices are still too narrow, leaving no room for exporters to accept low valuations sought by buyers heard at levels of $1,000-1010/mt FOB maximum.
“Discounted ex-India HDG prices are being sought which are completely unviable. In recent weeks, Indian sellers have been able to secure realizations ranging at $960-990/mt CFR from HRC sales in Saudi Arabia. Against this, the HDG price of $1,010/mt FOB is completely unrealistic and sellers are completely out of the export market,” sources in ArcelorMittal Nippon Steel Limited (AMNS).
“The prospect of a revival has also been pushed back as we hear that the ex-China HDG price in the Gulf is at a four-year low. Indian mills are unwilling to match such sales,” the sources said.
Amid near complete inactive market conditions, sources said that a western India-based integrated steel mill has reported a trade for a nominal volume of 4,000 mt with an Oman-based trading firm at a price of around $1,030/mt FOB, largely to maintain its market presence with a long-term customer.
