Ex-India hot dip galvanized (HDG) coil prices have remained largely stable over the past week amid almost silent trade activity barring stray confirmed deals heard at discounts, SteelOrbis learned from trade and industry circles on Thursday, January 22.
Sources said that, while ex-India HDG (grade Z120) prices are unchanged in the range of $675-710/mt FOB, a few deals were reported at deeper discounts compared to previous weeks, indicating the continued resistance of buyers to concluding deals at higher prices amid soft demand.
The sources citing market reports said that an integrated large mill reported a trade for 15,000 mt to a Singapore-based trading firm for onward sale at $650-655/mt FOB, lower than a few Middle Eastern sales at levels of $660/mt FOB a week ago. But this deal has not been confirmed by the seller by the time of publication.
“The recent price increases by sellers largely based on domestic market dynamics have not been accepted by buyers overseas. Demand is soft to moderate in most markets and buyers are only willing to conclude deals at discounts,” a source at ArcelorMittal Nippon Steel Limited said.
“Overall, we do not think there are many sellers are active on the export front. Adjusting offer levels to push sales overseas is not economically viable at a time when local sales of flat products remain buoyant and mills have already sharply lowered export allocations for this last quarter,” he added.
