Ex-India hot dipped galvanized (HDG) coils prices were kept stable although ‘notionally’ as silent trade conditions persisted owing to year-end compulsions on part of sellers and buyers in key destinations staying away from imports. Meanwhile, although export trade activity has been also slow in CRC segment, India suppliers have decreased their prices by around €30/mt over the past two weeks, given tighter completion with other Asian suppliers, especially in Europe.
Sources said that ex-India HDG (Z120) remained unchanged at $820-850/mt FOB, but largely considered a notional price as mills were either not interested in cutting price to push sales with negative impact on books at fiscal year-end or had negligible export allocations.
At the same time, EU distributors were heard to be more inclined in local sourcing after mills rolled back prices while Gulf buyers were sufficiently stocked and not under restocking compulsions. Offers for ex-India HDG in Europe have been reported at around €820-830/mt CFR, down by €5-15/mt over the past two weeks, which translates to around $840-850/mt FOB. ($1 = €0.92)
Meanwhile, ex-India CRC offers have been estimated at around $730-735/mt FOB, against $765/mt FOB two weeks ago. More specifically, offers for Indian origin CRC in southern Europe have been voiced at €720/mt CFR, down by €30/mt week on week. “Trade is very limited now in Europe, but I believe once CRC prices hit €700/mt CFR level, purchases will activate,” a Span based trader told SteelOrbis.
“Buyers and sellers are facing differing dynamics leading to the current prolonged suspension of export activity. Buyers are assessing that the market is yet to bottom out taking cue from weak China prices. Indian mills are unwilling to get into aggressive pricing to push deals and more focused on protecting margins at time of book closing,” a source in ArcelorMittal Nippon Steel Limited told SteelOrbis.
“We expect the trend to sustain till mid-April when dynamics of buyers and sellers may change with new export allocations fixed by local mills and prices find an equilibrium either at higher or lower levels,” another source said.