After two consecutive weeks of aggressive hikes, ex-India hot dip galvanized (HDG) prices have remained stable amid low-volume trades, but amid an optimistic outlook as deals have still been concluded at the higher end of the range.
Sources said that ex-India HDG prices are stable in the range of $810-830/mt FOB. Meanwhile, a western-based mill reported a deal for 2,000 mt at $830/mt FOB for Europe delivery, which translates to around $880/mt CFR, standing in line with other suppliers’ offers to Europe. Besides, another trade was reported for 4,000 mt for delivery to the Gulf region by an eastern India-based mill at $825/mt FOB, the sources said. Thus, even though the tonnages were low, the fact that deals were successful at the higher end of the stable ex-India price range of $810-830/mt FOB, seen in the previous week, indicated positive underlying demand and the market could consolidate on the back of this fundamental.
However, some market insiders have continued to maintain a more bearish outlook, claiming that high prices for low volumes “could not be construed as a true indicator of a trend” and the reality check would be when business activity resumes in full in Europe over the next weeks and ex-China offers come into play in the market in a bigger way.
“We are all keeping a close watch on how ex-China offers unfold over the next few weeks. But at the same time, it is unlikely local mills will reverse the recent price hikes based on overseas competition as long and domestic demand and margins continue to consolidate,” an official at a private mill told SteelOrbis.