Ex-India hot dip galvanized (HDG) coil prices are heard to have been cut by a few large local mills pushing volumes to the EU region, but most other producers have maintained that lower deal prices are not viable nor sustainable, SteelOrbis learned from trade and industry circles on Thursday, November 7.
Sources said that, though not confirmed by sellers, according to market chatter, ex-India HDG (grade Z120) prices have dropped by $25/mt on average to a range of $700-720/mt FOB, even though unconfirmed deal volumes were on the lower side.
According to the sources, an eastern India-based mill is heard to have concluded a trade for 3,000 mt for delivery to Antwerp at $710/mt FOB, which translates to around $765/mt CFR, while another integrated mill is supposed to have booked a volume of 4,000 mt for delivery to Qatar at $720/mt FOB or around $750-755/mt CFR.
“We do not give much weightage to either the deal price or the trade volume being heard in the market. Also, the low volume does not indicate a sustainable revival of trade conditions, particularly in western markets,” a source at Tata Steel Limited told SteelOrbis.
“There are limits to aggressive pricing since demand in the EU continues to be weak and there are high stocks at distributors. Year-end considerations will kick at any time in this region and buyers are still not looking at bookings for January delivery,” another source said.
