Indian hot dip galvanized (HDG) coil exporters have cut prices amid the local currency’s depreciation to a historical low and reduced end-use demand in key destination like the EU and the Gulf, but with very limited success in boosting trading activity, SteelOrbis learned from trade and industry circles on Thursday, May 12.
The ex-India HDG reference price is at $1,190/mt FOB, down by $10/mt on average from last week as offers from mills have slipped from $1,300/mt FOB to $1,280/mt FOB, but bids from the EU region are below $1200/mt on FOB basis, keeping trading at negligible levels.
“End-use demand is very weak in the EU region. Even the imposition of definitive antidumping duties on ex-Russia and ex-Turkey material are unlikely to prompt buyers to look at Indian sourcing, considering the low demand. Also, a lot of ex-China material is now available at a four month-low price,” an official at an exclusively flats producing private mill said.
“In the Gulf region, inquiries have improved after the Eid holidays, but these are not getting converted to deals, as, even after lowering prices, the spread between offers and bids is still not favorable for buyers,” he said.
At least two in trade circles claimed that even limited deals during the past week in the Gulf needed an additional 2-3 percent discount on the initial price, indicating that buyers were deferring deals anticipating a further decline in prices.
