Ex-India hot dipped galvanized (HDG) coil prices were kept stable but wide bid-offer gap, European mills turning aggressive in pushing local sales, combined with simmering trade tensions between India and EU over steel tariff, kept trade activity at nil levels, SteelOrbis learned from trade and industry circles on Thursday, June 20.
Sources said that ex-India HDG prices remained mainly unchanged at $760-780/mt FOB on one hand while stray bids continued to come in about $30-50/mt lower leading to no confirmed trade over the past week. According to the sources, mills in Europe were adopting aggressive pricing to push local sales prompting distribution channels to stay away from higher priced imports. At the same time, uncertainties over tariff rate quota (TRQ) safeguards extension in the EU and the Indian government stating that it is exploring retaliatory measures on imports from Europe had spread nervousness among both sellers and buyers, the sources said.
Recent holidays across the Middle East and low business activity since then also kept buyers from the region quiet.
Meanwhile, offers for ex-India cold rolled coils (CRC) have been voiced at around $695-700/mt FOB, down by $10/mt over the past week, while offers in Europe heard at $745/mt CFR, against $750-755/mt CFR last week.
“The simmering trade tensions between India and the EU could not have come at a worse time when steel exports from India have been declining quarter on quarter. Clearly government to government talks have failed to resolve the issue over steel safeguard levies. Under these circumstances, pricing remains an extreme challenge for both exporters and importers,” a marketing official with a government run steel mill told SteelOrbis.
“Recent price hike attempts by European mills have not been very successful and hence buyers do not need to look at imports very much. Indian mills are too unwilling to adjust prices risking further margin erosion,” he added.