Ex-India hot dip galvanized (HDG) coil prices have been kept mainly stable by local mills but they have failed to convert offers into deals in the face of strong competition from China in the Middle East and with buyers in Europe staying on the sidelines amid declining global prices, SteelOrbis learned from trade and industry circles on Thursday, July 11.
Sources said that ex-India HDG (Z120) has been quoted stable in the range of $760-780/mt FOB but buyers in the Middle East have been refraining from new purchases, preferring alternative suppliers selling $20-30/mt lower than the Indian suppliers. Meanwhile, end-use buyers in Europe have not been looking at imports as firm bookings were being accepted by local mills at discounted prices, while distributing channels are heard to be sufficiently stocked during the usual lean summer season. Specifically, ex-India HDG Z120-140 offers have been voiced in southern Europe at $850/mt CFR, down by $5/mt week on week.
Meanwhile, offers for ex-India CRC have been voiced at around $680-690/mt FOB, the same as last week, with offers to southern Europe have been reported at around $740/mt CFR.
“Indian sellers do not have much leeway in reducing prices further and this is a disadvantage in key overseas markets where competition is more aggressive particularly from ex-China offers,” a source at Tata Steel Limited told SteelOrbis.