Indian hot dip galvanized (HDG) coil exports have remained stalled during the past week amid the sharp mis-match between offers and bids, with sellers unwilling to adjust prices further to push sales overseas, at least for now, while buyers are still cutting bids, SteelOrbis learned from trade and industry circles on Thursday, May 5.
Ex-India HDG reference prices have dropped to $1,100-1,300/mt FOB with the midpoint at $1,200/mt FOB, down by $50/mt over the past week. Though the higher end of the range did not change and it reflects offers, mills have been unwilling to match bids, which were heard at $1,100-1,150/mt FOB, lower than a week ago when bids were reported at $1,200/mt FOB.
“Both demand and prices continue to weaken in the key Gulf and EU regions. Buyers are not willing to commit trades even for lower volumes in the falling market and are anticipating an even deeper bottom to emerge,” an official at a private sector mill said.
“EU buyers are also holding back from deals as there are sufficient stocks. Local flat product prices in the region too are softening and the difference with the landed price of ex-India material is very narrow offering little advantage for imports in depressed market demand conditions,” he said.
Industry sources said that, while it is possible for local mills to trigger some buying through aggressive offers of around $1,100/mt FOB, the sellers are willing to bide their time and risk inventory pressures.
At least one official at a private mill said that there have been reports of a few in the EU trade channels having exhausted their credit lines with banks and facing issues of opening letters of credit, which is an additional contributing factor in the negligible interest in imports.
