Prices for hot-dip galvanizing coils (HDG) in India remained "relatively" stable last week, as trading activity fell silent after sellers suspended submitting offers amid steady domestic sales of flat products, and therefore they are unwilling to promote discounted sales abroad.
Sources reported that ex-India HDG (grade Z120) prices are stable at $675-710/t FOB, but applications from the Middle East were registered lower in the range of $650-660/t FOB. Meanwhile, most of the large factories that were active in discounted sales in previous weeks have withdrawn from exports, which did not lead to confirmed deals during the past week.
According to sources, while there is moderate consumer interest in the Middle East, the market remains price-sensitive. Meanwhile, Indian factories are unwilling to maintain the discounted sales seen earlier as they are under pressure to maximize margins ahead of the end of the fiscal year. More importantly, most factories benefit from very strong domestic demand and prices for flat products by category, and therefore they see no need to boost overseas sales through aggressive pricing. At the same time, competition with Chinese HDG suppliers was strong in the Middle East, with transaction prices of about $655-660/t CFR in the UAE and Saudi Arabia, which means that the gap between Indian and Chinese offers is more than $40/t.
"Indian factories have suspended exports And they can wait for reasonable prices to
