Indian hot dip galvanized have maintained export offer prices unchanged but were able to conclude stray deals after increasing discounts amid sustained bearish sentiments in key markets, SteelOrbis learned from trade and industry circles on Thursday, August 11.
The reference price level for ex-India HDG for 0.5-1 mm and 220-275 gsm coating is at $870-910/mt FOB with the midpoint at $890/mt FOB this week, down by $10/mt on average from last week. While mills officially maintained offers at $900-920/mt FOB and the workable price ranged $870-880/mt FOB in the previous week, deals over the past week have been reported at $870/mt FOB and even some lower levels were heard in negotiations, indicating that sellers have been forced to deepen discounts for limited trade volumes.
According to the sources, buying interest in the Gulf region has been largely absent owing to the holidays, barring a trade for 8,000 mt reported at $870-875/mt FOB by an eastern India-based mill heard to be for onward sale to Africa.
“The fall in the US flat products market is creating nervousness in the West. But there are uncertainties as at least one large US mill increased prices last week. China’s steel exports in July dropped on month-on-month basis but are reported to be rising again in August. This will check any price rebound,” a source at a large Indian mill said.
“Indian sellers have some improved leverage to increase discounts from the falling local price of hot rolled coil (HRC) and the softening of imported raw materials like coking coal. But pricing on the supply side is still insufficient to drive overseas sales without a demand uptick in key destinations like the Gulf or the EU,” he added.
