Ex-India hot dipped galvanized (HDG) coil prices fell back in absence of buyers for year-end considerations and even large exporting local mills held back offers at the lower levels expecting sentiments and trade conditions to improve once business activity gains pace after the holidays, SteelOrbis learned from trade and industry circles on Thursday, December 26.
Sources said that ex-India HDG prices were rolled back to range of $710-740/mt FOB, from levels of $730-750/mt FOB a week ago but buyers both in the Middle East and Europe failed to respond to the low offers.
“Ex-India HDG prices were forced to be rolled back as deals at higher levels seen in earlier week were not sustainable amidst weak fundamental demand. Prices were rolled back to the current normal. But neither buyers nor sellers are keen to conclude deals and prefer to wait and watch for a new price trendline to emerge in the New Year,” a source in Tata Steel Limited told SteelOrbis.
“We are expecting some revival of trade from the Middle East in terms of volumes but not in terms of prices. In the case of Europe there are too many variables. The ongoing antidumping investigations and possibly lower tariff quotas for January-March will cause distributors in Europe to be extremely cautious looking at imports from India. Hence the mood in the New Year could be a mixed one,” another source said.