Even as ex-India hot dip galvanized coil (HDG) prices have been maintained unchanged, sellers were seen to be drawing positive signals from the stray low-volume deals emerging from Europe even though workable prices were lower.
Sources said that ex-India HDG prices have officially been maintained in the range of $810-840/mt FOB. However, several deals have been confirmed at lower levels in the range of $785-790/mt FOB.
In particular, an eastern India-based integrated mill has reported a trade for 5,000 mt for delivery to Antwerp at $785-790/mt FOB, or around €770-775/mt CFR, while another Gujarat-based mill in the west concluded a deal for delivery to Italy for 8,000 mt at $790/mt FOB. Besides, according to Spanish buyers, ex-India HDG is also reported to have been sold in Spain this week, though no details regarding the contact prices have been disclosed by the time of publication.
“The prices are still under pressure and not good. But deals working out breaking the prolonged trade silence is a good sign. Even if volumes are good, it is a positive for local mills looking at January and considering improving export allocation volumes for the last quarter,” an official at Tata Steel Limited told SteelOrbis.
“The outlook for Europe is improving. But the question still remains if demand and workable prices will improve going forward in the short term. It will be challenge for sellers to continue to book exports below the $800/mt FOB mark, which is considered too high by EU buyers at present. Only small volumes to bridge local supplies are working out,” he added.