Ex-India hot dip galvanized (HDG) coil prices have mainly been stable over the past week, though trade conditions have remained silent, with only rumours of a few stray deals being signed in the Middle East at deep discounts. Meanwhile, prices for ex-India CRC have indicated a slight decline in occasional deals in Europe.
Sources said that ex-India HDG prices are officially stable at $760-780/mt FOB with large mills unwilling to adjust offers to push sales.
However, there has been a lot of market chatter over two deals for tonnages of 5,000 mt and 8,000 mt for delivery by two large local mills for delivery to Oman and the UAE, respectively. But the deal prices are not available though there has been a lot of speculation that the final invoice price could be at a deep discount of as much as $20-30/mt on FOB basis. According to an official at a large eastern India-based mill, sales at such a large discount would be unprofitable unless done to a long-term customer and unless the discount was to maintain market presence.
Meanwhile, offers for ex-India cold rolled coils (CRC) have been voiced at around $685-700/mt FOB, down by $10/mt on the lower end of the range week on week. Ex-India CRC offers to the EU have settled at $735-745/mt CFR, against $745/mt CFR last week. Besides, according to sources, a deal for around 5,000-6,000 mt is reported to have been signed at $735-740/mt CFR Antwerp this week.
“Prices are under pressure in most key destinations with Asian mills extremely aggressive in pricing. Attempts by northern Europe mills to push prices, we hear, have faced a lot of resistance from buyers,” a source at ArcelorMittal Nippon Steel Limited told SteelOrbis.
“Buyers are also still working out the impact of the extension of the EU tariff rate quotas. Middle East buyers are active, but only if discounts are favourable,” he added.