Ex-India hot dip galvanized (HDG) coil export trading has fallen silent over the past week amid year-end considerations and the widening of the offer-bid gap, reflecting a lack of interest from buyers, particularly in the Gulf region, SteelOrbis has learned from trade and industry circles.
Local Indian mills have maintained prices for Z220-240 in the range of $820-850/mt FOB, based on the uptrend signals in flat product prices across Asia and the Middle East, but bids received have ranged at around $800-820/mt FOB, as distributors overseas were reported to be fully stocked for the year end and therefore are only willing to conclude deals if material is available at lower price levels.
“Indian mills are unwilling to accept trades as low as $800/mt FOB, unlike earlier. Sellers are taking a positive outlook on flat product prices rebounding after some gains reported from China and Vietnam,” an official at a private mill said.
The reference price for Z120 coils from India has remained stable at $730-750/mt FOB.
“But buyers are more pessimistic on cue from the weak demand in the EU and rangebound price movement in the US. Distributors are not willing to carry large imported stocks ahead of the holidays. Hence, we assess that export trade will remain in the doldrums until a new trend, in either direction, emerges next year,” he said.