Ex-India hot dip galvanized (HDG) and cold rolled coil (CRC) prices have decreased this week, though, according to market insiders, trade activity has remained slow as negative sentiments have worsened for flat products across destinations and buyers have been unwilling to conclude trades, expecting further downside potential.
Sources said that, while ex-India HDG prices (Z120) range at $780-800/mt FOB, against $780-820/mt FOB last week, with most bids heard at around $750-760/mt FOB, unviable for sellers, while buyers are perceiving it as the target rate considering the overall slide in flat product prices across Asia and the Middle East. According to European buyers, offers for ex-India HDG have been heard at around $840-850/mt CFR this week, down by $10/mt on the lower end of the range week on week.
Meanwhile, ex-India CRC offers have been estimated at around $700-710/mt FOB, down by $25-30/mt over the past two weeks. More specifically, offers for Indian origin CRC in southern Europe have been voiced at €700-710/mt CFR for May-June shipment, down by €10-20/mt over the past two weeks.
“We do not expect any response from offers as there is a global demand slowdown across all flat product categories. Buyers have multiple sourcing choices at multiple low-price points. Indian mills are unwilling to push deals at lower prices for financial year-end considerations,” a source at ArcelorMittal Nippon Steel Limited said.
“We expect the current trend to continue till the third or fourth week of April when booking for May-June production will commence. Prices, however, will remain a challenge for sellers,” he added.