Ex-India hot dip galvanized (HDG) prices have showed no change over the past week amidst moribund trading activity and the absence of any market direction for either sellers or buyers, SteelOrbis learned from trade and industry circles on Thursday, August 18.
Ex-India 0.5-1 mm HDG prices have been kept unchanged at $870-910/mt FOB since last week, while some sources said that the tradable level would be lower at $850-860/mt FOB, taking into account the poor response from buyers. The current price level is largely considered to be ‘notional’ with neither buyers or sellers willing to take a position in a market showing a conflicting outlook.
The sources in trade circles said that, while some producers in the EU and Asia have attempted to push up prices, deals failed to materialize at higher levels amid low demand and buyers’ resistance. Local mills were submitting offers but no bids were reported in the market.
“There is no direction in the market. Some producers are increasing prices even in the face of weak demand and a question remains over whether such increases will stick. Indian mills are preferring to hold prices seven in the absence of bids,” an official at ArcelorMittal Nippon Steel Limited said.
“The market has bottomed and is stagnating at lower levels as there are very few triggers for an upside. Gulf buyers have retreated also, leading to a fall in low-volume trades too,” he said.
