Ex-India hot dip galvanized (HDG) coil prices have been pushed up by large mills citing rising costs of furnace fuel, further widening the bid-offer gap which, with weak demand in key destinations, has prolonged the silent trade conditions, SteelOrbis learned from trade and industry circles on Thursday, June 11.
Sources said that ex-India HDG (grade Z120) has increased about $10/mt to the range of $780-790/mt FOB, with bids continuing to remain low in the range of $710-730/mt FOB and with several sales negotiations either deferred or called off by sellers.
According to the sources, demand in the Middle East has not been supportive of higher prices at a time when multiple more competitive ex-China offers have been available, reflected in lower bids for ex-India offers.
“Indian pricing is contrarian to the current trend. Ex-China prices are showing a negative bias and buyers are in a better bargaining position in the Middle East. The energy-driven rising cost of production gives Indian sellers very little pricing leverage to push discounted sales,” an official at a large private mill, not negotiating exports at present, said.
“The positive is that local mills do not have large exportable volumes available and are not under pressure to liquidate stocks by discounted sales. It is watch and wait for a rebound in demand,” he added.
