Ex-India hot dip galvanized (HDG) coil prices have remained stable over the past week, but trade activity has been kept alive by small-volume deals at discounts in the Middle East amid rising competitive challenges.
Sources said that ex-India HDG (grade Z120) offers have remained stable in the range of $670-700/mt FOB but buyers in the Middle East, while showing interest, have been seeking discounts to conclude supply contracts. Specifically, the sources said that an eastern India-based integrated mill reported a trade for 12,000 mt for delivery to Qatar at $645-650/mt FOB, against an invoice price of $670-675/mt FOB. Similarly, another large mill concluded a deal for 20,000 mt for delivery to the UAE at $655/mt against an initial offer of $680/mt FOB, the sources said.
“The slight revival of trade activity in the Gulf region is a positive. But the market remains very price-sensitive. The export curbs in China have not yet been shown to have an impact on prices. There are still several sellers in the market giving buyers bargaining power,” a source at ArcelorMittal Nippon Steel Limited told SteelOrbis.
“We do not know whether current discounted deals can be sustained. However, the trade activity seen last week can be expected to ease due to year-end considerations. Sellers will need to reassess market conditions when a new trend emerges in the New Year,” another source said.