Although India hot dip galvanized (HDG) suppliers have made attempts to increase their offers to be in line with rising domestic prices and tight supplies in the local market, while export trade activity has remained muted as demand is still muted globally.
Sources said that ex-India HDG prices have been quoted in the range of $780-820/mt FOB, up by $10/mt on the lower end of the range week on week. Suppliers in southern Europe have reported ex-India offers for Z140 HDG at around $835/mt CFR, which corresponds to last week’s levels. However, no deals have been heard. According to sources, low business activity in Europe, weak demand, and resistance to high prices in the Gulf region have prevented offers from being converted into deals.
“Ex-India pricing is more a reflection of local market dynamics whereby mills are in short supply of carbon steel for captive conversion. Good margins from local sales are also prompting sellers to maintain a low-key presence overseas, with minimal sales just required to maintain market presence,” a source at ArcelorMittal Nippon Steel Limited told SteelOrbis.
“With HDG export allocation being kept at a very low level by most mills in the current quarter, there is no pressure to resort to aggressive pricing to push sales overseas. Wait and watch is very affordable as an export strategy,” another market insider said.