Indian hot dip galvanized coil (HDG) exporters have had to cut prices, trying to accelerate buying interest from the Gulf region, while rising enquiries from the EU could not be converted to trades owing to differences between offers and tradable levels, SteelOrbis has learned from trade and industry circles.
Ex-India HDG prices are at $1,100-1,220/mt FOB with the midpoint at $1,160/mt FOB, down by $30/mt on average from last week.
Sources in trade circles and at private mills have confirmed that there was an increase in enquiries from buyers in the EU but the levels of discounts offered by sellers were insufficient to convert them into trades.
It was pointed out that local HDG prices in southern Europe had softened to around $1,260-1,320/mt ex-works, and so importers were submitting bids at $1,100-1,150/mt on FOB basis at the highest, but such deep discounts have not been workable for Indian sellers.
“In stable market conditions, ex-India HDG has enjoyed an average cost advantage of $150-250/mt on landed price basis over local EU prices. Now, the ex-India price is almost on a par with local European prices, offering negligible incentives to buyers unless there are local delivery issues,” an official at a private mill said.
“In the current market conditions, unless ex-India offers are at a deep discount, buyers in the EU are pulling back bids. We also hear that April passenger car sales are down a heavy 20 percent, and hence there is no urgency among raw material buyers to restock unless prices are low,” he said.
An offer for ex-Indian HDG Z120 to the UAE was heard at $1,270/mt CFR, which translates to $1,200-1,220/mt FOB for July shipment.
Sources said that a Gujarat-based exclusively-flats steel producer has reported a trade for 8,000 mt to a Middle Eastern trader at slightly above $1,200/mt FOB, but this could not be confirmed by the time of publication.