Ex-India hot dip galvanized (HDG) coil prices have declined in the face of aggressive competition and weak demand in key destinations, but no deals have been confirmed at the lower levels as sellers have been refusing to disclose details in recent weeks, SteelOrbis learned from trade and industry circles on Thursday, September 5.
Sources said that ex-India HDG Z120 prices have settled at $680-730/mt FOB, against $740-750/mt FOB last week, but most market participants said this was not sufficient to drive sales as buyers in the Middle East faced with dwindling demand have still had cheaper options for sourcing their requirements.
The sources said that a few sellers are heard to have concluded small-volume deals but, since they did not confirm the details citing “confidentiality in competitive market conditions”, these deals are considered as rumors for the time being.
“We have been out of the export markets for flat products for several months. Reports on market activity are very unreliable. What is clear is that ex-India HDG prices have been rendered uncompetitive by the steady fall in offer levels from the main producing countries led by China,” an official at a private mill told SteelOrbis.
“Also, overseas sales are not entirely a function of pricing either. Weak demand in the Middle East owing to geopolitical reasons and uncertainties on tariff barriers in Europe are keeping buyers at bay. We have a minimal allocation of intermediates for captive conversion to HDG,” the official added.