Ex-India hot dip galvanized (HDG) prices have remained stable for the second consecutive month amid persistently quiet trading conditions, as even discounted offers have failed to attract buying interest in key destinations due to weakening flat steel prices and ongoing global trade uncertainties, SteelOrbis learned from trade and industry circles on Thursday, October 16.
Sources said that, while ex-India HDG (grade Z120) offers have remained stable at $680-700/mt FOB, some mills were heard to have submitted offers in the range of $650-670/mt FOB in the Gulf region and Europe but did not elicit any response.
According to sources, some counterbids from Europe were heard as low as $680/mt CFR, but sellers deemed these levels too low, further prolonging the current lull in trading. Meanwhile, Gulf markets were reported to be fully stocked, with buyers reluctant to make new commitments unless offered deep discounts. In Europe, buyers were also hesitating to take import risks amid uncertainty surrounding the new import safeguard measures and the implementation of carbon restrictions on imports.
According to an official at a major private mill, the resumption of business activity in China, the return of sellers in key markets, increased offer volumes and heightened competition have all further increased the pressure on an already uncertain market, which is also being affected by changes in Europe’s global trading framework. Most buyers in the Gulf have also been deferring new deals, anticipating that prices will reach a new bottom before considering fresh offers.
“We do not expect any rebound in exports in the short to medium term, given weak demand and rising trade barriers. The prices sought by a few buyers in the Gulf are not economically viable for Indian mills,” a source at ArcelorMittal Nippon Steel Limited told SteelOrbis.
“We assess that Indian mills will keep export allocations minimal and may only sell limited volumes at discounted prices, primarily to maintain their market presence,” another source said.