Ex-India hot dip galvanized (HDG) coil prices have remained stable over the past week but the discounted sales seen earlier and hopes for revived trade activity have faded with buyers pulling back and preferring to wait for a fresh round of price declines.
Sources said that ex-India HDG (Z120) offers have remained at $685-700/mt FOB, but trade has stalled with sellers pausing discounted sales, while buyers in the Gulf region have also retreated, anticipating declines in the overall flat product segment after the approaching long holiday in China.
According to the sources, distributors in Europe have not been responding to offers owing to the risks of quota exhaustion and taking a cue from the price resistance seen in the local market after some mills in the EU failed to push through price hikes, indicating soft market conditions.
“From the sellers’ point of view, discounted sales cannot be sustained. From the buyers’ standpoint, there are expectations of flat products entering a new downtrend post-holiday in China, taking forward the slight weakening being seen already. There seems to be a moderate demand assessment in the Gulf region, but buyers’ expectations of a sharper fall in prices are stalling deals now,” a source in ArcelorMittal Nippon Steel Limited told SteelOrbis.
“The HDG export market will remain quiet for the next few weeks for the festivals in India and the holidays in China. We expect a new trend to emerge once bookings for November delivery commence thereafter,” he added.
