Ex-India hot dip galvanized (HDG) coil prices have remained stable over the past week, but the recent prolonged silent trade conditions have been broken by a few deals reported from the Middle East, though these were signed at discounts with a section of market participants pointing to this as an indication of a revival being around the corner, SteelOrbis learned from trade and industry circles on Thursday, September 4.
Sources said that ex-India HDG (grade Z120) offers have been kept unchanged in the range of $685-700/mt) FOB, while most bids received were as low as $650/mf FOB, with local sellers citing risks of exhaustion of quotas keeping buyers from Europe away.
However, according to the sources, there was a slight improvement in buying interest from the Middle East as smaller-volume deals were worked out after hard bargaining for discounts.
The sources said that an eastern India-based large mill confirmed a trade for 8,000 mt to the UAE at $670-675/mt FOB net of discount, against an initial bid submitted at around $660/mt FOB. Similarly, a western India-based exclusive flat steel producing mill reported a supply contract for 12,000 mt for delivery to Bahrain at $680/mt FOB net of discount, the sources said.
“Buyers from the Middle East are showing interest, indicating a demand improvement. But the market is very price-sensitive as a lot of very competitive ex-China offers are floating in the region. There are very stiff price negotiations before contract conclusion. We do not see the recent purchases as setting a trend in the region. Indian mills will also not be able to sustain discounted sales,” an official at a private mill said.
“On the other hand, we do not see any buying support emerging from Europe in the short term amid quota exhaustion, coupled with the stuttering demand revival,” he added.
