Ex-India hot dip galvanized (HDG) coil prices have remained unchanged and bids from the major markets were still low, causing market activity to be limited, SteelOrbis learned from trade and industry circles on Thursday, October 20. As Chinese prices have been going down, competition for Indian mills has been tough.
Sources said that sellers have maintained offer prices at $870-890/mt FOB, but inquiries from the Gulf region could not be translated into deals with the tradable levels being still much lower, at $830-840/mt FOB at best.
However, trade sources said that at least one negotiation which had been at an impasse owing to disagreement between buyer and seller on the terms of the letter of credit was resolved, leading to the successful conclusion of a deal for end-of-November shipment.
A western India-based exclusive flat product producing mill was able to conclude a trade for 18,000 mt for delivery to Egypt at a price of $875/mt FOB, the sources said.
“HDG prices in the US remain flat and are soft in the EU. Indian mills have become inactive in this product segment. Even the limited coated steel output is being diverted for local sales where domestic automobile manufacturers are increasing production,” an official at a private Indian mill said. “Our assessment is that local mills are unlikely to re-enter the HDG market overseas unless realizations improve significantly. The outlook is bearish,” he said.