Indian hot dipped galvanized (HDG) coils exporters marginally lowered prices, but buyers in the key markets like Gulf deferred bookings, waiting for prices to settle lower and no significant volume deal was reported in the market over the past week, SteelOrbis learned from trade and industry circles on Thursday, September 23.
Indian mills lowered prices slightly by $10/mt to the range of $1,130-1,160/mt FOB, but as prices in Europe and North America are on a downtrend, Gulf buyers felt that the market was yet to bottom out and adjustments by Indian mills were not sufficient and preferred to defer any contracts.
According to the sources, dealers in the UAE and Saudi Arabia were sufficiently stocked and with demand still on the lower side, were under no pressure to place new bookings until prices settled at a new bottom.
“The market is expected to remain dull and prices move in a narrow range. There could have been a demand push from the EU buyers once new tariff quotas started becoming available from January. But reports of weaker demand from automotive sector could delay the demand revival,” sources in ArcelorMittal Nippon Steel (AMNS) said.
“We assess that rolling mills capacities will be low during October-December quarter from lower value added product exports. Opportunities of aggressive pricing to push volumes is very limited,” he added.