Ex-India hot dipped galvanized (HDG) coil prices have remained stable as optimistic outlook persisted among sellers but not backed by workable deals with buyers across key markets of Middle East and Europe sceptical over recent stabilization of prices at higher levels, SteelOrbis learned from trade and industry circles on Thursday, July 31.
Sources said that ex-India HDG (grade Z120) prices have been kept unchanged at $685-700/mt FOB. But deals failed to work out. In Europe, while holiday season kept business activity at low key, recent attempts by local mills to increase prices was not seen to be enough just yet for large distributors to look at import options. At the same time, buyers in Gulf were not in hurry to close import deals perceiving current offers to be on the higher side and cautious in restocking during the weak seasonal demand period.
“The positive is that prices across Asian producing countries, barring India, is stabilizing at higher end. But has not yet triggered any improvement in import trade in destinations like Gulf or Europe, largely because buyers do not see higher offer levels of sustain,” an affiliate of Tata Steel Limited told SteelOrbis.
“As for ex-India offers, a continued decline in flat product prices may prompt exporting mills to increase export allocations and lower offers to be able to push sales overseas. Inventory pressures in local market, may force such adjustments to ex-India offers. It may also trigger better buyers’ interest. But these are subject multiple variables as clinching deals overseas amid changing tariff dynamics is like hitting a constantly moving target,” he added.