Demand extremely weak in local Ukrainian HDG market

According to market sources, demand for hot dip galvanized (HDG) coil in the local Ukrainian market is extremely weak, while end-users are focused on purchasing material at the lowest possible price and give less importance to quality issues, against the backdrop of the weakness of the domestic currency against the US dollar exchange rate and the difficult economic situation in the country. Market sources do not expect to see any improvement in demand in the short run. Ukrainian producers' offers for HDG of 0.5 mm thickness to the local market are in the range of $1,030-1,100/mt ex-warehouse, while HDG offers of 0.7 mm thickness are currently at $977-1,022/mt ex-warehouse.
 
On the other hand, Chinese offers for HDG coil to Ukraine stand at the level of $720/mt CIF Black Sea. Offers for HDG of 0.5 mm thickness from Russia to Ukraine have decreased by $15/mt over the past month to $825-830/mt DAP, while Russian HDG offers of 0.45 mm thickness to the same destination have declined by $20/mt over the same period to $880-885/mt DAP. The prices are for October production and November shipment.