Chinese export offers for Galvanized plain coil (GP) have witnessed fall of USD 5/MT as the Chinese manufacturers come under pressure to secure more orders for April-May shipments.
Hence, China’s HDG (Hot dipped Galvanised iron,1 mm) export offers for Apr/May shipments have slumped on weekly premises and are heard in the range of USD 635-640/MT, FoB China.
Trading activities remains sparse as overseas buyers are bidding at USD 630/MT on FoB basis. But Chinese mills have not yet confirmed any deal with buyers as they are reluctant to accept lower bids.
As per market sources, few Indian steel makers are overbooked for April shipment and other Indian steel-makers are yet to announce their offers for this month.
India: GP Prices under pressure over dull demand
The galvanized plain coils/sheets market remain dull this week owing to slack demand in the domestic market. Subdued demand in domestic market is putting pressure on GP/GC prices .
Therefore manufacturers and traders are offering rebates and discounts to clear their inventories in the domestic market.
Currently GP/GC (0.8mm,120GSM) are heard to be in the range of INR 42,000-43,000/MT(ex-Mill).Prices exclusive of Excise duty 12.5%.
However prices of GP/GC across other major markets are hovering in the range as follows: Hyderabad – INR 51,000/MT; Mumbai – INR 50,000-51,000/MT; Delhi – INR 51,500/MT and INR 50,500/MT in Chennai. Prices are inclusive of Excise Duty of 12.5%.
Despite weak demand, market participants mentioned that prices in the domestic market will rise marginally in the end of March or in first week of April by INR 500-1,000/MT.
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