Ex-India hot dip galvanized (HDG) coil prices have remained largely stable, although some deals in the Middle East are reported to have been concluded for relatively small volumes and at discounted price levels.
Sources said that ex-India HDG (Grade Z120) offers are stable at $680-700/mt FOB. However, market sentiment has improved as, unlike earlier, deals are now starting to be confirmed, indicating that Middle Eastern buyers are slightly more confident, even if they continued to resist higher prices.
According to the sources, as eastern India-based integrated mill concluded a trade for 8,000 mt for delivery to the UAE at $655-660/mt FOB net of discount. Besides, another trade for 15,000 mt was reported by an exclusive flat product producing large mill for delivery to a Bahrain-based trading firm at around $665-670/mt FOB net of discount.
“The positive is that the market has moved from speculation to confirmation. Yes, buyers in a certain region are restocking. But these are early days to see this as a sustainable revival on the export front. Volumes are low and buyers are resisting higher prices. There is no indication of fundamental changes in demand-supply dynamics,” an affiliate of Tata Steel Limited told SteelOrbis.
