Ex-India hot dip galvanized (HDG) coil prices have been maintained unchanged amid largely silent trading conditions which were, however, interrupted by a few discounted sales to the Middle East at discounts, SteelOrbis learned from trade and industry circles on Thursday, December 12.
Sources said that large mills have kept ex-India HDG offer prices stable in the range of $700-720/mt FOB, but deals have been very rare as most European buyers are largely absent owing to year-end considerations and sufficient stocks.
However, the sources said that at least two deals were reported by local mills and, though the volumes were on the lower side, it kept market activity alive.
It was learned that a western India-based mill has concluded a trade for 5,000 mt for delivery to the UAE at an offer price of $710/mt FOB, but the final invoice price was at an undisclosed discount, which market sources speculated to be at least $20/mt lower than the offer.
Another integrated mill sold 3,000 mt to the Middle East at an official offer price of $700/mt FOB, but the final price was at an undisclosed discount which could not be verified in the market.
“The couple of deals kept overall market activity alive, but there is no any indication of any positives on the export front which continues to remain in limbo. Steel service centres in Europe are reporting a sharp slowdown in shipments to end-users. There is fundamental weakness in hot rolled coil (HRC), the primary feedstock for HDG, in Europe,” a source at a private mill said.
“The manufacturing outlook in Germany is quite bearish and this is impacting sentiments across western Europe and distributors lack confidence in looking at imports,” the sources said.