Ex-India hot dipped galvanized (HDG) trade activity remained silent from widening of bid-offer gap and logistical and shipping disruptions in the Middle East keeping buyers from the region out of the market, SteelOrbis learned from trade and industry circles on Thursday, July 30.
Sources said that while ex-India HDG offers were kept unchanged at $780-790/mt FOB, few bids were at lows of $720-740/mt FOB resulting in no confirmed deals.
According to the sources, buyers from Gulf Cooperation Council (GCC) countries were either cautious in concluding trades owing to challenges in delivery completion or seeking discounts to partially compensate for higher shipping and insurance costs.
It was pointed out that following few sales negotiations falling through in earlier weeks, sentiments were 'very negative' with both buyers and sellers reluctant to get into fresh engagements as consensus on pricing and deliveries was proving elusive.
“Adjusting the price to compensate of logistical disruptions and delivery costs are not viable for sellers. Buying interest in GCC is moderate but buyers are unwilling to accept trade risks,” an affiliate of Tata Steel Limited said.
“Most large mills are not active on the export front. Current prices are adverse and export allocations are low hence sellers are avoiding risks too. Domestic market can absorb current supplies, which are low also because mills are operating galvanizing furnaces at lower levels,” he added.
