Despite improved interest from buyers as reflected in the rising number of enquiries, deals for ex-India hot dip galvanized (HDG) coils have continued to be dogged by uncertainties over freight rates to Europe, SteelOrbis learned on Thursday, January 11.
Ex-India HDG prices have been maintained in the range of $830-875/mt FOB, with most large mills reporting enquiries from Europe, but no deals are reported amid the difference over CFR prices following highly volatile quotes being submitted by freight forwarders.
Though not confirmed by the seller, an integrated mill is said to be in negotiations at $875/mt FOB for sale of a tonnage of 20,000 for delivery to Antwerp, but no deal could be concluded as the CFR prices were unacceptable to the buyer due to rising freight rates along with the extended delivery timeline, as the vessel would travel around the Cape of Good Hope to avoid security risks along the Red Sea route.
An eastern India-based mill has reported a trade for 5,000 mt to the Middle East at $870-875/mt FOB, the sources said.
“Global shipping companies plying India’s west coast and western Europe have extended the diversion of vessels from the Red Sea “for the foreseeable future”. We are receiving multiple widely divergent freight quotations as a result. Delivery timelines are getting extended by 10-15 days, none of which are acceptable to our buyers,” an official at a private mill said.
“Taking the war risk premium and insurance surcharge, freight quotations are in a range of 60-80 percent higher than normal already. Neither buyers nor sellers willing to bear the incidence of these higher costs. Ironically, demand from western Europe for ex-India HDG is strong with distributors seeking post-holiday restocking,” he said.
