Ex-India hot dipped galvanized (HDG) prices were officially maintained but at least two large mills reportedly dropped prices to push sales without any confirmation of deals, SteelOrbis learned from trade and industry circles on Thursday, August 29.
Sources said that ex-India HDG Z120 were kept stable at $740-750/mt FOB but at least two sellers were reported to have submitted offers at $720-730/mt FOB range, but both declined to divulge any details. In particular, according to a section of market participants, one western India-based exclusive flat steel producer was said to have sold a small tonnage of 2,000 mt for UAE delivery at $720/mt FOB. However, in absence of any confirmation, others said that since demand in general in the Middle East was very weak and buyers were mostly off imports, the report of a deal was ‘speculative’.
Another eastern India-based mill was heard to have sold 5,000 mt for Antwerp delivery at $725/mt FOB but again without any confirmation and market participants said that the sales could have been to European affiliate of the seller.
“Given the fundamentals of the market of weak demand in key destinations coupled with uncertainties of antidumping investigations in EU, reports of successful ex-India HDG deals remain under skepticism. But at the same time, it is also possible that given lack of trade activity and high competition, a seller will be unwilling to confirm a trade,” a source in a private mill told SteelOrbis.
“The only definite conclusion that despite possible stray deals, Indian exports will remain in doldrums in the medium term. We hence are not making any significant export allocations going forward,” another source said.