Ex-India hot dip galvanized (HDG) coil prices have been kept stable by large local mills over the past week, but the prospects of successful deals have receded amid the further widening of the bid-offer gap, SteelOrbis learned from trade and industry circles on Thursday, June 4.
Ex-India HDG (grade Z120) prices have been kept stable at $770-780/mt FOB, while bids have been heard at lows of $710-730/mt FOB, even lower than bids at $720-740/mt FOB a week earlier.
According to the sources, pessimism has deepened on export front as ongoing sales negotiations were either deferred or called off following declining bids. While multiple offers are now available in key destinations with more competitive offers seen, Indian mills facing high energy costs to run galvanizing furnaces have had little leeway in aggressively pushing sales at deep discounts and have preferred instead to pause overseas sales pitches.
Market circles said that estimated export offers of 25,000-35,000 mt have been stalled by the fresh declines in bid price levels.
“Buyers’ and sellers’ expectations are wide apart in the Gulf market. EU buyers are on the sidelines amid tariff quota concerns and sufficient stocks at distributors. Gulf buyers are seeking partial compensation for higher logistic and shipments costs. But Indian mills are under strong cost challenges to discount sales,” a source at a mill said.
“The next price direction will be determined by ex-China sellers who are attempting to push up prices and eyes are on whether buyers will resist or accept higher workable price. Indian mills will prefer to wait and watch till then. Any rebound in acceptable prices at levels of $750-760/mt FOB will prompt Indian mills to rework their sales position,” the source said.
