Ex-India cold rolled coils (CRC) and hot dip galvanized (HDG) coil prices have dropped sharply over the past two weeks, but trade activity has fallen silent after buyers were heard to be submitting low bids, while the wider bid-offer gap has prevented any fresh bookings, SteelOrbis has learned from trade and industry circles.
In the CRC segment, the reference price for Indian material has been reported at $780-800/mt FOB. Last week, offers from India to Europe have been at $880/mt CFR, translating to around $830/mt FOB. One deal for ex-India CRC to Europe has been heard at $830/mt CFR to Europe.
Ex-India Z100-120 HDG prices have been in the range of $880-950/mt FOB, where the higher end represents mills’ desirable level, while the lower end is for more competitive offers. But bids from Europe have been received at closer to $900/mt CFR in the face of competition from ex-Asia offers.
Market sources said that buyers in the EU and the Middle East have been holding back bookings, expecting prices to seek a new bottom after the weakening of the flat steel product category overall in the Asian region, and they said that Indian sellers would also need to adjust HDG prices after reducing domestic flat product prices.
“There is an increase in the number of offers in the Middle East and the EU with more Asian sellers active in these markets. Buyers are waiting for the market to find a balance at a lower level impacted by oversupply,” a source from a large Indian mill said.
“The EU has been driving ex-India sales in recent months. But there are uncertainties ahead. The commercial vehicle and passenger car industries in the EU are positive. What is not clear is whether the gains in recent sales growth is owing to the low base effect last year. The level of restocking by distributors will get clearer over the next few weeks. Until then, ex-India prices can be expected to remain range-bound,” the sources said.
