Ex-India hot dip galvanized coil (HDG) prices have been kept stable over the past week amid listless trading conditions because of the widening bid-offer gap and the exhausted quota in Europe, but sellers have become slightly optimistic from the rise in competing offers, SteelOrbis has learned from trade and industry circles.
Ex-India CRC prices are still at $710-720/mt FOB, which mainly translates to stable offers to Europe at $760-770/mt CFR. The market has been silent due to the summer season and the exhausted quota.
Ex-India HDG prices have been maintained at $730-740/mt FOB, but some rare bids and trades to Europe averaged at around $700-710/mt FOB, which, however, is explained by the exhausted quota and the need to offer lower FOB levels, which will be similar to the real market price on CFR after adding import duty up to 25 percent. Activity from the Gulf region has remained negligible amid reports that distributors are sufficiently stocked for the short term.
According to the sources, though buyers in Europe have been seeking deeper discounts as tariff quotas for shipments from India are almost exhausted and only a few sellers concluded such deals for low volumes, positives are being taken from attempts to push up prices in ex-Japan and ex-South Korea offers. However, even if competitive offers to Europe have consolidated at higher levels, the impact on ex-India prices will be limited in the near future or with a lag once new tariff quotas kick in.
A western India-based integrated mill has reported a trade for delivery to Antwerp at $730/mt FOB, but several market participants claimed invoice prices to be around $705/mt net of discounts.
An eastern India-based mill has also reported a trade for delivery to Spain at $720/mt FOB but the net discount could not be ascertained from the market.
