Ex-India hot dip galvanized (HDG) coil prices have remained stable even as silent trade conditions have continued with buyers from the Middle East on the sidelines reflecting weak demand for overall flat products, while European buyers have been quoting low bids with several cheaper alternatives available, SteelOrbis learned from trade and industry circles on Thursday, May 8.
Sources said that ex-India HDG (Z120) offer prices are unchanged at $680-700/mt FOB for the Middle East but with no response to the offers from buyers. At the same time, offers for ex-India HDG Z275 have been heard $740-750/mt CFR.
At the same time, offers submitted in Europe are unchanged at higher levels of $725-760/mt FOB, but bids received were heard at $700/mt for Z120 and $740/mt Z200, with deals proving to be elusive, the sources said.
“The Middle East market is lacking demand. Europe is price-sensitive and buyers are having multiple cheaper sourcing options. Ex-India sellers have limited pricing leverage to overcome these two market conditions,” an affiliate of Tata Steel Limited told SteelOrbis.
“Bookings for July are yet to commence. Once they start, sellers will take a call on adjusting prices. Till then, we see muted trade activity and range-bound pricing,” he added.