Demand for HDG has retained its strength worldwide and in particular in the Middle East. With the rise in HRC prices, the rolling mills that produce HDG in this region are also hiking their prices. Some Middle Eastern mills have already filled their order books for export sales until the end of August and currently prefer to adopt a wait-and-see stance before announcing their new prices for September.
Due to the brisk construction sector in the United Arab Emirates (UAE), demand for HDG is robust, particularly for 1.5 mm thickness and above. It is heard that most offers being given to this market are of Chinese origin. Another country selling HDG to the UAE is India. The latest rumors are that the Indian government may abolish the export duty which is currently in effect. Offers for new production HDG in India, a very significant country in terms of galvanized steel production, are also expected to indicate a rise. In India, the latest HDG booking to the UAE has been concluded for 1.2 mm thickness material with 275 gr/m² zinc coating at the level of $1,450/mt CFR Dubai for August shipment. Indian mills are waiting for September shipment sales for now.
As regards the Egyptian market, it is seen that all HDG export sales have been concluded till the end of August. Countries registering the strongest demand for Egyptian material in recent days are Eastern Europe, the Middle East and Turkey. The HDG demand in the local Egyptian market is registering normal levels. HDG prices in this market vary in a range of EGP 7,518-6,818/mt ($1,404-1,274/mt). Meanwhile, base price offers for exports sales are hovering at around $1,400/mt FOB. The mills in the region are expected to hike their prices for September shipments by $60-70/mt, mainly due to the rise in HRC prices. The increase in import offers for Egypt and the local mills' prices are triggering the HDG prices in the Middle East as well.
On the other hand, HDG prices in Morocco have indicated a rise of $50/mt, with the main reason again being the uptrend in HRC prices. Export offers in this country for HDG of 0.5-0.6 mm thickness with 100 gr/m² zinc coating are at the level of $1,555-1,505/mt FOB for August/September shipment.
As regards the European market, demand is currently registering normal levels, with Eastern Europe showing pretty robust demand. In the Romanian domestic market, the price for HDG of 0.50 mm thickness with 100 gr/m² zinc coating is at $1,300/mt, excluding VAT. Although import material prices are hovering at higher levels that those in the Romanian domestic market, bookings are being concluded. Indian HDG offers for the Romanian market vary in a range of $1,560-1,510/mt CFR Constanza for material of 0.25-0.40 mm thickness with 100 gr/m² zinc coating.
Demand for HDG in southern Europe is also seen to be at normal levels. Base prices for HDG in the Italian domestic market are at €840-850/mt ex-works. Meanwhile, due to the antidumping investigation on China carried out by the European Union, buyers are hesitating to conclude deals from China. In addition, Chinese offers for the region in question are also surging. Another problem experienced in China is the cancellation of some mills' orders due to the May 12 earthquake which hit the country's Sichuan region.