Ex-India hot dip galvanized (HDG) coil prices have seen small corrections over the past week even as trading has continued to remain in the doldrums, with buyers in Europe seeking additional discounts and those in the Gulf unwilling to extend commitments head of the Feast of Sacrifice holiday.
Sources said that ex-India HDG prices have been mainly voiced at $780-850/mt FOB, compared to $790-820/mt FOB last week, with mills having little headroom to adjust and push volumes owing to weak sales in the domestic market.
At the same time, the sources said that prices in Europe were stable at around $800/mt FOB, and there was some buying interest from distributors, but the latter were seeking discounts to conclude deals, which proved to be unworkable for local mills. According to an official at an integrated mill which is reported to have submitted two offers, but these failed to be converted into deals. Europe-based buyers were seeking maximum valuations at 740-750/mt on FOB basis and a ceiling of $800/mt maximum on CFR basis.
“I do not think that any Indian mills will be able to sell at such prices in Europe. But we are still maintaining an optimistic outlook as some mills in Europe are facing supply issues and importing distributors may have to soften their stand on discounts to conclude deals,” the official said.
“There is, however, the caveat on ex-China prices which are showing a high level of volatility. If this sustains, the inactive ex-India trade may be extended,” he said.