Despite continuing drops in prices, ex-India hot dip galvanized coils (HDG) exports have come almost to a complete halt over the past week due to the steep decline in prices in the EU and buyers in Gulf retreating ahead of the holidays next month, SteelOrbis learned from trade and industry circles on Thursday, June 30.
Indian integrated mills have cut prices by $10/mt on the lower end to the range of $980-1,000/mt FOB, compared to $990-1,000/mt FOB a week ago, but have still failed to bridge the gap between offers and the few bids received for small volumes, leading to inactive trade conditions.
“There are quiet market conditions in the Gulf ahead of the festival next month, but even small-volume trades have come to a halt with HDG prices declining sharply in the EU and low procurement of the raw material from the automobile industry,” an official at a private mill said.
“Ex-India prices are near the bottom. We do not see a further downside risk below the $970/mt FOB mark. But the issue is that demand is in a depression in key destination markets and sellers do not have much price leverage to push overseas sales,” he added.
