Ex-India hot dip galvanized (HDG) coil prices have slumped amid the continuing virtual halt of trading activity in response to falling Chinese offers and sellers’ unwillingness to accept lower realizations combined with the inability to overcome logistical challenges of port disruptions and restrictions on movement of material, SteelOrbis learned from trade and industry circles on Thursday, May 27.
Indian HDG prices have shed $100/mt to $1,100-1,150/mt FOB, but neither sellers nor buyers have been willing to push for contracts.
Sources said that, while sellers have been unwilling to settle for lower realizations and are expecting a rebound in prices triggered by renewed buying from the EU region, buyers in key markets like the Gulf have been in wait-and-watch mode, anticipating a correction to gain momentum in the wake of price plunges in the flat steel market in China.
“There is too much volatility in steel prices in most markets. Major steel mills are preferring to wait and watch for some stability to return. Either a correction gains momentum and a new bottom emerges, or the market is merely in a transition phase and prices will rebound soon. Either ways sellers can hold back offers and wait,” an official at ArcelorMittal Nippon Steel Limited said.
“We hear that some buyers in the Gulf have deferred signing supply contracts until next week, indicating that, if the downturn in prices continues further, deferments cannot be ruled out. On the supply side, Indian mills are comfortably placed on inventories and are in no hurry to confirm bookings at lower levels,” he added.