Ex-India hot dip galvanized (HDG) coil offers have remained relatively stable during the past week, with some offers showing a slight downward bias, but trading has stalled amid weakening demand, unworkable discount expectations, and increased competition in the Middle East, while EU buyers remain highly risk-averse, SteelOrbis learned from trade and industry circles on Thursday, December 11.
Sources said that HDG prices (Z120) have settled at $670-700/mt FOB, down by $10/mt on the lower end of the range week on week, but even limited bids received from the Middle East have been at lows of $650/mt FOB, resulting in silent trade conditions.
According to sources, with more sellers led by Chinese mills becoming increasingly active in submitting offers in the region and buyers having multiple options in a “very price-sensitive market”, Indian sellers have been pushed to the sidelines after failing to adjust their offer levels. At the same time, bids for small volumes in the EU have been also voiced at around $650/mt FOB. However, uncertain trade barriers, including issues related to CBAM, prompted some negotiations to be called off, the sources said.
“The Middle East market is close to being fully stocked. At the same time, there are more sellers from China and Japan active in the market and adjusting offers, and thereby increasing competition with ex-India offers,” a source at ArcelorMittal Nippon Steel Limited told SteelOrbis.
“Indian sellers are likely to remain on the sidelines to wait and watch. There is limited scope for adjustments in offers from current levels,” he added.
