Ex-India hot dip galvanized (HDG) trade has proved to be a mixed bag for local mills, having to drop prices for lower grades, but prices for higher grades have been maintained amid sustained interest from buyers in both Europe and the Middle East.
Ex-India HDG (Z120) offers prices have been estimated at $825-830/mt FOB, down by $10/mt week on week, while offers for higher grade HDG Z200-240 have been maintained at $880-890/mt FOB amid improving demand for higher grades in sectors like electrical equipment, components in high-end automobiles and specialized steel fasteners. According to sources, while bid-offer disparities were seen to be wide in the case of commodity grades of HDG (Z120 and below) amid the big number of alternatives available to buyers, two of the leading Indian mills were focusing on overseas sales of higher-grade material, while there were few sellers and a tightening of supplies to specialized steel processors and steel component makers.
Sources said that a western India-based mill has reported sales for 12,000 mt of higher grade HDG for delivery to Hamburg at $880/mt FOB and another tonnage was sold to a Middle Eastern trading firm at around $875/mt FOB. Besides, an eastern India-based mill has also reported a trade for 8,000 mt for delivery to South Africa at $885-890/mt FOB, the sources said.
“HDG trade volumes continue to be on the lower side and distributors catering to the construction sector are very price-sensitive. But higher grades used for specialized steel products are stable and, even though volumes are small, the price is good for the seller,” a source at ArcelorMittal Nippon Steel Limited told SteelOrbis.
