Ex-India hot dip galvanized (HDG) coil prices have been corrected down for some destinations like Europe, but offers have failed to be converted into deals owing to the weak demand in the Middle East and with buyers in Europe deferring trades, expecting declines in prices to gain momentum in the short term, SteelOrbis learned from trade and industry circles on Thursday, July 18. Decline in CRC prices from India has been small, but also heard by some buyers.
Ex-India HDG (Z120) has been available at $760-770/mt FOB, with the higher end of the range softening by $10/mt, but buyers were heard to be submitting bids around $20/mt lower citing the overall weak flat product prices in the local markets, resulting in silent trade conditions. Offers for Z120-140 HDG from India have been reported at $830/mt CFR in southern Europe. Even though offers are $20/mt below those voiced last week from India, they are still up to $30/mt higher that offers from Vietnam to Europe.
Also, ex-India CRC prices are at $675-685/mt FOB, down by $5/mt on average over the past week. The official offers to Europe are at $735/mt CFR , which is $5-10/mt above offers from such sellers as Taiwan and Japan.
“Multiple differing negative factors are at play in various destinations. The Middle East buyers are unwilling to look at ex-India offers due to weak demand and cheaper ex-China offers. Buyers in Europe may accept ex-India offers for small volumes, but are only keen on discounted deals, citing falling flat product prices in India,” an Indian source said.
“With sellers resisting any discounted sales and buyers unwilling to accept current offers, there is a stalemate in the export market. Key drivers would need to change dramatically to revive the current market conditions,” the source said.