Ex-India hot dip galvanized (HDG) coil prices have been maintained unchanged, but trading activity has hit a pause and no significant deals have been reported with buyers from Europe, the recent mainstay destination, absent as major distributors were reported to be nearing full-stocks and they were unwilling to increase commitments ahead of the extended weekend holidays, SteelOrbis learned from trade and industry circles on Thursday, April 6.
Ex-India HDG prices have remained stable at $960-1,010/mt FOB amid uncertainty over the short-term demand outlook.
According to an official at an exclusive flat steel producing integrated mill, buyers in the EU had completed their short-term restocking plans and they have decided to take a pause and reassess the demand situation.
Local sellers are concerned that the immediate pause in trading activity could be prolonged as the EU market was ‘getting saturated’ with the increase in the number of suppliers active in the market and apprehensions that the recent upturn in price and trade volumes may have run its course in the short term.
The official said that nervousness over finished steel prices in the Asian region risked spreading and expectations of prices declining could prompt players in the EU to defer deals once business resumes next week.
However, officials at private mills averred that leading sellers in the export market would not adjust ex-India prices immediately to revive trade and would instead wait for business activity to resume in the Gulf region after Ramadan and assess any new market direction before taking a call on pricing.