Ex-India hot dip galvanized (HDG) coil prices have moved down in line with global prices declines, particularly the decreases seen in the EU region, but sellers have still failed to drive sales, with the Gulf market heard to be sufficiently stocked to meet low demand, while distributors in Europe consider imports to be risky, SteelOrbis learned from industry and trade circles on Thursday, July 3.
Sources said that ex-India offers for HDG (Z120) have dropped by around $15-20/mt week on week to the range of $685-700/mt FOB, but no deals were confirmed during the past week.
According to the sources, several large Indian mills are heard to have submitted offers to Europe, but without eliciting any response, possibly because buyers have been cautious on two counts - the further fall in local prices and uncertainties regarding shipping delivery timelines.
“The Italian flat product market turned particularly bearish and offers did not get any response while in the rest of Europe trade is sluggish and the mood very bearish. We expect prices to bottom out in July and any trade activity revival will come only thereafter. So, in the short-term pricing alone is unlikely to attract buyers,” a source at ArcelorMittal Nippon Steel Limited told SteelOrbis.
“A few Gulf buyers have initiated negotiations but were looking to push prices down further and our assessment is that workable prices would be around $670/mt FOB for any deal to be successful, but the level was uneconomical for any local mill,” the source added.