Ex-India hot-dip galvanized (HDG) coil offers have remained stable over the past week, with smaller-volume deals gaining some traction in the Gulf region albeit at discounts, even as overall trading activity has slowed with ex-China sellers retreating for the long holiday.
Sources said that, while ex-India offers have been kept mainly unchanged in the range of $680-700/mt FOB, down by $5/mt on the lower end of the range week on week, small-volume trades have been concluded in the Gulf at prices in the range of $650-670/mg FOB net of discounts. According to the sources, with ex-China sellers largely absent resulting in low overall trade activity, some urgent small-volume buying in the Gulf region has been diverted towards ex-India offers, but buyers concluded contracts only after sellers conceded discounts as sought. Hence, a deal for around 5,000 mt has been reported by an eastern India-based integrated mill for delivery to the UAE at around $655-660/mt FOB, the sources said. Similarly, another deal for 10,000 mt has been concluded by a large mill for delivery to Qatar at $670/mt FOB, the sources added.
“Some urgent buying has been seen in the Middle East, but we do not assess this as a revival in buying sentiment. The prices are too low to be sustainable from the viewpoint of sellers’ economic viability. More clarity on the market direction will come after the National Day holiday in China and as more sellers enter key destinations,” a source at ArcelorMittal Nippon Steel Limited told SteelOrbis.
“With prices showing weak sentiment in Europe, we can expect more trade supplies being directed to the Gulf region and Indian mills can expect stiffer competition in the coming weeks,” he added.
