Ex-India hot dip galvanized (HDG) coil prices have remained stable at lower levels by sellers over the past week, but the combination of tepid demand in the Middle East, declining prices in Europe together with uncertainties surrounding shipping and freight costs have kept trade activity silent, SteelOrbis learned from trade and industry circles on Thursday, July 10.
Sources said that ex-India HDG (Z120) prices are stable at $685-700/mt FOB, but bids from Europe have been reported at around $650/mt FOB, contributing to the inactive trade conditions.
According to the sources, Middle Eastern markets are heard to be sufficiently stocked, and buyers were willing to restock only at deep discounts, which were not accepted by Indian sellers. At the same time, buyers from Europe showed a disinclination to conclude imports as local prices have remained on a downtrend and distributors have been unwilling to extend import exposures in view of the holiday season approaching, the sources said.
“We expect HDG exports to remain inactive at least until the end of August. EU prices bottoming out and the rebound in ex-China flat product prices are positive expectations thereafter. But the challenge to successful deals for Indian sellers will be the extent of further price adjustments. In our assessment, Indian sellers will be unwilling to accept lower margins and will remain marginal players on the export front,” an official at a private mill told SteelOrbis.
