Ex-India hot dip galvanized (HDG) coil prices have been kept relatively stable despite the lack of trade, with buyers in key destinations having multiple cheaper options amid declining flat product prices, but local sellers have been unwilling to get into aggressive pricing at the fiscal year-end.
Sources said that ex-India HDG (Z120) prices have been kept mainly unchanged though with a downward bias in some offers, standing at $810-820/mt FOB, versus $810-830/mt FOB last week. According to sources, several offers have been voiced at $780-800/mt FOB and at least two offers have been as low as $750/mt FOB though they have not been officially confirmed in the market, since no deals have been reported by any seller or buyer at the abovementioned level.
According to the sources, multiple offers from ex-Asia sellers for Z120 and for higher grades of Z240 and above have been heard in most key markets at very aggressive offers and Indian mills have been unwilling to enter the competitive markets.
“Globally prices are seeking lower levels amid higher supplies from Asian producers. Indian mills are not willing to enter competitive fights sacrificing margins at a time of book closures. Most mills have low or nil export allocations now and it is not prudent to confirm bookings for shipments for the next quarter,” a source at ArcelorMittal Nippon Steel Limited told SteelOrbis.
“We assess that the price is very near a bottom. Sellers are waiting to finalize export allocations for the first quarter of next fiscal year and are waiting for a rebound to enter the export market again,” another source said.