Ex-India cold rolled coil (CRC) and hot dip galvanized (HDG) coil prices have been reduced marginally with sellers still reducing their offers to almost all main destinations given no visible signs of a demand recovery, though achieving modest success in HDG sales to North Africa.
Specifically, ex-India CRC prices have dropped by $15-25/mt over the past week, falling to $700/mt FOB in the latest offers to southern Europe. In particular, offers for ex-India CRC have been voiced at around $750/mt CFR southern Europe, versus $765/mt CFR last week. However, no deals have been reported so far, as most customers have been in wait-and see mode, affected by the slow demand.
Meanwhile, Indian HDG sellers have been offering their materials at $790-820/mt FOB, down by $30/mt from the higher end of the range week on week. According to sources, Indian sellers have been dropping prices to gain an advantage amid lot of reports that major coil producers in Europe are seeking large increases over current spot prices in supply contract negotiations beginning with buyers for the second half of 2023. In particular, this week ex-India HDG offers in Europe have been heard at $860/mt CFR for July shipment, which translates to around $810/mt FOB, down by $20/mt week on week.
At the same time, while no fresh deals have been reported in Europe, Indian exporters have managed to conclude stray deals in North Africa which has kept trading alive. In particular, an eastern region-based mill has reported a trade for 5,000 mt of HDG for delivery to Egypt at $810/mt FOB, while another trade has been heard for Morocco, but details are not available. Furthermore, a Gujarat-based mill is heard to have confirmed a booking for 8,000 mt for delivery to Nigeria at $790/mt FOB sources said.
“Overall demand in the key markets of the Gulf and Europe is not good. But there is optimism for Europe as consumers and producers have commenced long-term supply contracts. A price increase in such contracts will be a derived benefit for Indian sellers and hence the latter are adjusting prices more in anticipation than based on the current demand-price dynamics,” a representative of a private mill told SteelOrbis.
“At least one Indian mill has started long-term supply contract talks with Europe-based buyers. But theis is still privileged information and no details have been disclosed. Once finalized, these will determine the medium-term pricing outlook for Western markets,” he added.