Ex-India hot dip galvanized (HDG) coil prices have been kept stable over the past week, but the bid-offer gap has mostly prevented deals, with just a few small tonnages sold at slight discounts, SteelOrbis learned from trade and industry circles on Thursday, June 18.
Ex-India hot dip galvanized (HDG) coil (grade Z120) offers are unchanged in the range of $780-790/mt FOB but, with bids reported at $750-760/mt FOB, sellers have withdrawn offers, unable to arrive at any workable level in the face of rising costs of production.
However, one exclusively flat steel producing integrated steel mill is heard to have concluded a deal for 12,000 mt at $770/mt FOB for delivery to an automobile component manufacturing company based in Gulf.
Another large mill also reported a sale to an undisclosed destination at $760/mt FOB, the sources said.
Despite these deals, a number of ongoing sales negotiations by sellers were reported to have been called off as discounted bids were not viable after large mills had hiked prices in earlier weeks, with margin protection being key to maintaining viability in the face of the rising cost of operating galvanizing furnaces, the sources added.
“The wide bid-offer gap reflects that, while Indian mills have been forced to increase prices, competitive challenges are increasing, with buyers having multiple options at slightly lower prices,” a mill said.
“While we do not see an immediate rebound in the price, the Iran-US peace deal can change not only trade flows but also ease energy costs in the medium term, offering mills a little bit more flexibility in pricing,” he added.
