Ex-India hot dipped galvanized (HDG) coils prices have remained stable over the past week, but sellers have attempted to keep trades alive through discounted sales to maintain market presence and liquidate export-allocated inventories at the close of the first quarter of the current fiscal year.
Sources said that while official HDG offers remained unchanged at $780-850/mt FOB, the effective price net of discount for some sellers has been estimated at $745-750/mt FOB. Moreover, according to market insiders, an eastern-based integrated mill reported trade for 5,000 mt at $745/mt FOB for Egypt delivery.
“Some sellers were heard to be acceding to discounted bids from buyers. We believe this is because mills are keen to liquidate export allocated stocks for the April-June quarter and minimize carryover of stocks to the new quarter,” a source in a private mill said.
“Demand is key destination dissipated. Gulf business activity has been low owing to festival holidays. In Europe, demand is improving but buyers are still very price sensitive. Hence Indian sellers are keener on small tonnage deals to maintain market presence and wait for price consolidation,” he added.