The recent export offers of HDG from Chinese mills is going to effect Indian galvanizing industry in major way as some Chinese galvanizers, probably not from the top tier, are offering incredibly low prices for exports of HDG, specially in the thinner segment, which has been the strong point of Indian galvanizers,.
As per report, some Chinese mills have lowered their export offers for HDG in 0.23mm thickness with 100 gms coating to less than USD 800 per tonne CFR Eastern Europe as compared to USD 950 per tonne and above levels from Indian mills.
It is also reported that some small Chinese CR makers have lowered their offers for CRFH. AS per information, CRFH in 0.14 mm to 0.20mm in 914 mm width is being offered at USD 750 per tonne to USD 700 per tonne for late November or early December shipment on CFR basis. The higher thicknesses in range of 0.4mm in 1200 width are being offered at USD 680 per tonne.
The offers for CRFH and HDG from Chinese mills seem to be in line with prevailing HR prices in China. In fact, there could be still some more space for further lowering of offers of CRFH and HDG.
In such a scenario, the prospects of Indian galvanizers on exports appears to be under serious threat. It is likely that we would see some of them lowering their export levels in coming days to retain their export volumes.
Source : steelprices-europe.com