Indian hot dip galvanized (HDG) coils export prices have dipped as buyers in the key Gulf market have fallen silent and have not responded even to lower offers, while no progress has been reported in ongoing negotiations between the EU buyers and local sellers for post-January deliveries, SteelOrbis learned from trade and industry circles on Thursday, September 30.
Ex-India HDG prices fell to $1,110-1,130/mt FOB, down by $20-30/mt compared to $1,130-1,160/mt FOB a week ago, but Gulf buyers are still not interested in making commitments, perceiving the weakening of demand to result in no deals reported in the market.
According to the sources, while the Gulf market remained inactive, optimism over ongoing negotiations between local mills and the EU buyers has also been ebbing. They said that EU flat product prices are seen to be softening and buyers have been unwilling to rush into fresh bookings for deliveries post-January, when new import quotas become available.
“Flat steel buyers across the Gulf and the EU are waiting for prices to find a bottom. There is a lot of stock going around and buyers are not expected to become active before the last quarter. European auto majors are working at lower levels and using less steel coils,” a source in ArcelorMittal Nippon Steel Limited (AMNS) said.
