Ex-India hot dip galvanized (HDG) coil prices have been showing a slight downward bias amid prolonged inactive market conditions with sellers having almost exhausted exportable volumes and hence not submitting offers, while buyers have remained on the sidelines in the face of uncertainties due to new emerging tariff regimes and supply flows in global trade, SteelOrbis learned from trade and industry circles on Thursday, February 27.
Sources said that ex-India HDG (grade Z120) offer prices have been voiced at $700-720/mt FOB, against $700-740/mt FOB last week, while at least two bids were reported in the market at lows of around $680/mt FOB. However, most sellers have declined these bids as most mills were carrying negligible export volumes and hence not under pressure to adopt deeply discounted sales.
“On the one hand, buyers in the Middle East are taking a pause ahead of Ramadan. In Europe, the price increase by large mills is not very successful and, coupled with weak economic indicators led by Germany, distributors are not looking at imports. On the other hand, uncertain global trade terms and resultant changes in supply chains are risks to committing significant investments in import trade,” a steel sector analyst at a Mumbai-based financial advisory firm told SteelOrbis.
“Under these circumstances, ex-India prices will remain under pressure. Low export allocations by local mills for the first quarter (April-June) will reflect this,” he added.