Indian integrated steel mills have renewed attempts to push up hot dip galvanized (HDG) export prices, but trading activity has suffered a setback with buyers in most key markets remaining quiet, barring modest deals in the EU region.
According to market sources, HDG export prices have been increased to the range of $535-540/mt FOB compared to deals concluded in the range of $525-530/mt FOB in earlier weeks, as local steel mills are seen to have aligned HDG prices with rising export and domestic prices of hot rolled coil (HRC).
However, traders said that, with holidays starting in key markets like the Gulf where business activity overall has fallen, buyers in other Asian regions have been reluctant to conclude deals, anticipating that prices will react downwards and hence they have adopted a wait-and-watch stance.
Market sources said that a western India-based trading firm, through its overseas affiliate, has concluded a deal for an estimated volume of 12,000 mt at a median price of around $537/mt FOB with a EU-based trading firm with delivery to Antwerp.
Another western India-based integrated steel mill has concluded a small-volume supply contract estimated at around 8,000 mt with a Middle East-based trading firm at around $535/mt FOB, the sources said, adding that its second offer for another Gulf trading firm did not succeed as buyers demand for discounts was not acceded to by the seller.