Ex-India hot dip galvanized (HDG) coil prices have been kept relatively stable over the past week, but unviable discount demands in the Middle East and the lack of import demand in Europe has stalled deals, resulting in silent trade conditions.
Sources said that, while ex-India HDG prices have remained unchanged in the range of $680-700/mt FOB, bids from key Middle East destinations have been reported at lows of $650-660/mt FOB, which have been unviable for most sellers.
According to the sources, there had been some optimism for viable trades based on the number of ongoing negotiations in Gulf markets amid decent buying interest, but price sensitivity and the requests for deep discounts coming from buyers led to most of the sales talks being called off.
At the same time, offers ex-India HDG for Z120 and Z140 offers in Europe have been voiced at higher levels as compared to offers in the Gulf, standing at around €670/mt CFR southern Europe, which translates to around $780/mt CFR or $725-730/mt FOB. However, even though these offers have been in line with offers from other foreign suppliers in the region, they have not found any response, largely because most distributors are heard to be fully stocked and the uncertain and risky tariff and non-tariff trade barriers have caused buyers to remain on the sidelines as regards imports, the sources said.
“Early December holidays in the UAE resulted in lower business activity. However, more importantly, despite modest demand in some markets, buyers are not willing to conclude deals unless offers are discounted. For sellers, conditions are extremely challenging. Hence, both buyers and sellers are waiting and watching,” a Tata Steel Limited associate told SteelOrbis.
$1 = €0.86
