Indian hot dip galvanized (HDG) exports have remained under pressure this week as buyers have kept expecting more price declines in most markets to gather momentum in view of excess supplies, with bids received being too low, resulting in minimal trade activity.
Sources said that ex-India HDG (Z120) prices are at $810-830/mt FOB, against $820-850/mt FOB previously, but sellers have reported bids received in the range of $780-800/mt FOB, which were not acceptable owing to year-end considerations and low export allocations on the part of local mills. However, the only stray deal was confirmed for a low tonnage of 2,000 mt for delivery to Rotterdam at $875/mt CFR, the sources said.
“Flat product prices are very weak amid extremely bearish conditions at a time when there is oversupply and ex-China prices are dropping. Besides, with Ramadan starting, buyers in the Gulf region are also reducing activity,” a source at ArcelorMittal Nippon Steel Limited told SteelOrbis.
“Everyone is waiting and watching for the current decline to run its course and a new bottom to emerge before restocking. Indian sellers are unwilling to drop prices to push exports because of already having low or nil exportable volumes or because reducing prices and margins is not viable ahead of book closures for the current fiscal year,” another source said.
