Indian hot dip galvanized (HDG) coil exporters have maintained their export offers at $590-605/mt FOB, but have stopped responding to lower bids as integrated steel mills have been unwilling to react to lower demand in key markets like the Gulf by adjusting prices and push volumes overseas, SteelOrbis has learned on Thursday, October 22.
Most integrated steel mills have been seeking to put HDG exports on hold as, in view of high local prices of hot rolled coil (HRC) and tight supplies, the lowering prices of higher 00value-added products to conclude contracts has not been viable, traders said.
Officials at integrated steel mills said that downward price adjustments for ex-India HDG are not feasible as exporters have had to maintain a minimum price differential with HRC prices and the latter are already at a 12-month high. Exporting steel mills are also not under any compulsion from rising inventories to lower their prices, the officials added.
“Both prices and demand are seen to be softening in Gulf Co-operation Council (GCC) markets. EU inquiries too are only for modest volumes. Unless these dynamics become more positive in these markets, local exporting steel mills will stay away from concluding contracts,” an official at a western India-based flat steel producing steel mill said.
“A few bids were received during the past week from Gulf buyers. But these were seeking discounts of 2-5 percent and most exporters declined to conclude transactions,” he added.