Ex-India hot dip galvanized (HDG) coil prices have remained stable over the past week, but even the modest trade activity seen earlier this month has now fallen silent as buyers in key markets have deferred responding to offers, taking their cue from the softening of competitive ex-China prices, SteelOrbis learned from trade and industry circles on Thursday, August 28.
More specifically, while ex-India HDG offers have been maintained unchanged in the range of $685-700/mt FOB, bids have been heard at lower levels of around $650/mt FOB, but local sellers after dropping prices earlier have had no further scope to push sales at discounts.
According to sources, while buyers from Europe have remained largely absent from the market, a few buyers from the Middle East have reportedly responded to ex-India offers with significantly low counterbids but have been rejected by sellers without initiation of any price negotiations. “There is tough competition with Chinese sellers in the Gulf region. For instance, ex-China HDG Z275 coating has been offered at $720-740/mt CFR UAE, while the same prices have been offered by Indian suppliers for Z120 HDG in the UAE,” a market insider told SteelOrbis.
“Industrial demand in Europe is still weak and local prices are still not consolidating enough to trigger interest in imports from distributors. Buyers in the Gulf are moderately interested but are deferring deals, expecting the downtrend to gain momentum taking its cue from the slight softening seen in ex-China offers,” an affiliate of Tata Steel Limited told SteelOrbis.
“Indian mills too have maxed out in leveraging prices to push sales overseas. After dropping prices in the earlier week, they have little leeway for further cuts. Also, export allocations for the quarter have seen a drawdown and mills are comfortable not having to be aggressive in selling overseas. It is wait and watch for the next cycle to emerge,” he added.
