Ex-India hot dip galvanized (HDG) prices have remained stable over the past week and no significant trade has been reported in the Gulf, where buyer are retreating ahead of the national holidays in the region, and the slide in prices in the EU region has depressed the outlook, SteelOrbis learned from trade and industry circles on Thursday, December 2.
Despite the lack of trading activity, Indian mills have maintained export prices at $1,100-1,130/mt FOB as buyers in the Gulf were not willing to commit bookings ahead of the holidays, and the optimism over the renewal of buying from the EU after January too seems to have dissipated among sellers.
“Gulf buying has been restricted to small volumes over the past weeks indicating soft demand. Hence, traders are unwilling to restock and will only return after the holidays. Prices are sliding in the EU, belying expectations of bookings to emerge post January, when new export tariff quotas will be announced,” a source at ArcelorMittal Nippon Steel Limited (AMNS) said.
“The spread between local hot rolled coil (HRC) and HDG prices is still narrow and mills are not in a position to offer discounts,” the source said.
A modest stray deal heard in the market was from a Maharashtra-based mill for 5,000 mt at the lower end of the price range at $1,100/mt FOB, market sources said.