Ex-India hot dipped galvanized (HDG) coil prices were stable and low bids kept trade activity silent, barring stray deal for higher grade at a premium, SteelOrbis learned from trade and industry circles on Thursday, July 2.
Ex-India HDG (grade Z120) offer price level was kept unchanged at $780-790/mt FOB but bids were seen to be declining and reported in range of $740-750/mt FOB even lower than $750-760/mt FOB a week ago with sellers preferring to remain on the sidelines.
Amid the overall inactive market conditions, a western India based exclusive flat steel producer reported a sale of 8,000 mt of high grade (Z140) HDG at premium in range of $810-820/mt FOB for delivery to Gulf.
However, several traders pointed out that the sale of higher grade was an outlier to overall market conditions which remained bearish as buyers were turning very price sensitive and deferring deals expecting a correction triggered by improvement in trade flows and more sellers turning active in key destinations where demand still remains weak.
“Every decline in bid level is eroding sellers’ pricing power already under pressures of rising cost of production. In our assessment, current bid levels do not offer any positive margin to a seller and hence lack of trade activity,” an official with a private mill said.
“Export allocations in the current quarter will be very conservative unless workable price rebounds to minimum $760-780/mt FOB, net of discount,” he added.
