Ex-India HDG prices have mainly been kept unchanged this week as, according to sources, trade conditions have lapsed into inactivity amid the widening bid-offer gap in most of the regions, coupled with low export allocations available from sellers. However, some improvement in demand has been seen in Europe this week, which has resulted in numerous sales of ex-India HDG to the region this week.
Sources said that most ex-India HDG, Z120-140, have mainly been maintained at $810-840/mt FOB. At the same, although, some fresh offers for ex-India HDG have been heard in Europe at as high as €840/mt CFR, which translates to around $865/mt FOB, and numerous deals for at least 50,000 mt in total are reported to have been signed in the region at $860-870/mt CFR or $810-820/mt FOB levels, according to sources.
Furthermore, more deals for ex-India CRC have been also reported to have been signed in Europe at €710/mt CFR, which translates to around $725/mt FOB, SteelOrbis has learned.
According to sources, optimism over improved trades once January bookings commenced and the current very low allocations for export have prompted large mills to remain passive in responding to enquiries. “Most mills are drawing a positive outlook from the continuing enquiries even at lower prices. Mills expect the flow of enquiries to be backed by higher workable prices in the New Year, once mills in Europe gain success in pushing up local flat product prices,” a source at Tata Steel Limited told SteelOrbis.
“While the Middle East has fallen silent owing to geo-political uncertainties, in Europe there is a wait-and-see stance for both buyers and sellers. From the local perspective, Europe holds promise as trade activity is improving even if workable prices are on the lower side. Once local prices start consolidating, we assess that EU buyers will start accepting ex-India offers,” another Indian source said.
