Ex-India hot dip galvanized (HDG) have been kept stable but trade has remained silent largely because buyers from the Middle East and southern Europe have been active in receiving offers but have been deferring deals due to weak demand.
Ex-India HDG (grade Z120) prices have been kept stable at $780-800/mt FOB, while buyers from the Middle East have been active in seeking offers but have been either responding with bids at below $780/mt FOB or nor responding at all, indicating uncertain demand projections or expectations that prices have peaked in the short run and will not be sustained. At the same time, some Indian suppliers have continued to hope for a price increase to at least $810/mt FOB in the next round of sales.
“There is still some positive mood among local sellers, taking their cue from exporting countries like China. But there is no definitive price trend for buyers. The latter claim that exporting mills in Asia will not be able to hold on to recent gains in prices as demand across western economies remains uncertain. The market is on a knife-edge and can go in either direction,” a source at ArcelorMittal Nippon Steel Limited (AMNS) told SteelOrbis.
“Middle Eastern buyers need to restock in our assessment, but are deferring trades, waiting for the right price. Business has not picked up as much as expected post-holiday. It is in wait-and-see mode for both buyers and sellers,” another source added.