Ex-India hot dip galvanized (HDG) coil prices have been maintained unchanged and even two small-volume trades concluded over the past week, though speculated to be at discounts, have failed to instill any improvement in sentiments or expectations of a trade revival, SteelOrbis learned from trade and industry circles on Thursday, December 5.
Sources said that ex-India HDG prices have been kept stable in the range of $700-720/mt FOB and two trades confirmed during the week were considered to be too small in terms of volume and at discounted prices to be considered as triggering any rebound in overall trading activity, particularly since major buyers from Europe continue to stay away from the market.
The sources said that a western India-based exclusive flats producing integrated mill has reported a trade for 3,000 mt for delivery to the UAE at $710/mt FOB amid speculation that the final invoice price could be at a discount with the deal price in the range of $680-690/mt FOB.
Besides, another eastern India-based mill also concluded a trade for 5,000 mt for delivery to Qatar at $700/mt FOB, the sources said.
“The stray deals have broken the prolonged silent trade activity on the export front. But we are not pinning many hopes nor taking them as a tentative revival of exports, considering the small volumes and highly discounted price. In our assessment, such discounted deals are very specific to the sellers and cannot be viable for most other local mills,” an official at a private mill told SteelOrbis.
“Buyers from Europe have been away from the market for several weeks. Flat product prices are not able to stabilize at higher levels in face of buyers’ resistance, as we hear from our marketing team. Distributors are also not looking at imports due to year-end considerations and sufficient local availability. Hence, the quiet export front will be extended going forward,” he added.