Ex-India hot dip galvanized (HDG) coil exports have become slightly more active with a few mills resuming submission of offers to the Middle East keeping prices unchanged, but confirmed deals have remained elusive owing to very low bids, SteelOrbis learned from trade and industry circles on Thursday, September 19.
Sources said that, while ex-India HDG (Z120) has been kept unchanged at $720-730/mt FOB and at least three large mills are reported to have submitted offers to the Middle East, the bids received were heard in the range of $680-690/mt FOB even for small tonnages, resulting in no deals being confirmed during the past week. According to the sources, the activity seen in bids and offers indicates that there was some improvement in buyers’ interest in the UAE and Qatar, but only at price levels that have not been acceptable to sellers.
At the same time, offers for ex-India Z100 HDG in southern Europe have been estimated at $770/mt CFR, or around $710-715/mt FOB, while offers for Z140 HDG have been voiced at $790-795/mt CFR, or around $730-735/mt FOB.
“The only positive is that buyers at least in a few markets are showing interest. But the price is not working out as competition is a big challenge for local mills amid global oversupply. We do not know if offers below the $700/mt FOB mark are viable for any local mill,” a source at ArcelorMittal Nippon Steel Limited told SteelOrbis.
“Despite lower output in China, there is still a demand-supply mismatch that is undermining pricing. We will have to wait for more clarity on the short-term trend after the holidays in China next month. Indian mills will continue to keep minimal export allocations,” another source said.