Indian hot dip galvanized (HDG) coil prices have dropped, but the gap between offers and bids is still too wide for concluding deals actively amid falling demand in the Gulf region and softer prices in the EU, SteelOrbis has learned from trade and industry circles.
Ex-India HDG tradable price levels have slipped to $1,200-1,300/mt FOB with the midpoint at $1,250/mt FOB, which is $55/mt below that reported a week ago. The higher end of the range corresponds to the offer prices from mills, but with the highest bids heard at levels of $1,200-1,220/mt FOB. So, trade activity has remained at negligible levels for the second consecutive week.
“In the Gulf region, even after lowering prices, demand is very weak, owing to the ongoing Ramadan and shorter business hours and also project deferment, and distributors expecting a new lower bottom once business activity resumes at full strength next month,” a source at ArcelorMittal Nippon Steel Limited (AMNS) said.
“Ex-China prices are continuously seeking lower levels leading to lower bids from key destinations. Indian mills are having to reassess rolling mill outputs, adjusting to the drop in overseas shipments,” he said.
The only significant deal heard was for a tonnage of 5,000 mt from a Gulf buyer with an eastern region-based mill at $1,190-1,210/mt FOB, trade sources said.
