Ex-India hot dip galvanized (HDG) coil prices have been kept largely stable in the past week with trade activity remaining almost silent even though at least one large mill is heard to be aggressively pushing higher grades for overseas sales at higher prices, SteelOrbis learned from trade and industry circles on Thursday, June 5.
Sources said that ex-India HDG (grade Z120) prices have largely been maintained at $700-720/mt FOB. Buyers from the Middle East have been almost completely absent during the past week while, with market conditions hovering between weak and sluggish in Europe, distributors are unwilling to look at imports and have preferred to wait for a firmer trend to emerge.
However, according to market insiders, at least one large western India-based mill is heard to have been aggressively submitting offers in Spain and Italy for a higher grade of HDG (Z275) at $780-785/mt FOB for August deliveries. Though market sources were unable to confirm if any deals were successful from these offers for higher grade material, it was confirmed that these volumes had been diverted for export sales after a few local automobile manufacturers declined to lift the volumes for their own consumption for production of passenger cars for overseas markets.
“Indian mills’ pricing for HDG exports is based on compulsions of local market dynamics and is aimed at maintaining a basic differential with lower value-added flat products. But offers are too high to work in Europe. As for the Gulf Cooperation Council (GCC), we have to wait for after the holidays to be able to assess the new market conditions,” a source at ArcelorMittal Nippon Steel Limited told SteelOrbis.
“But we do not maintain a positive outlook amid uncertainties of a fresh round of tariff salvoes and resultant rising risks of trade diversion across global markets. Buyers across regions are facing challenges to assess these changes and navigate their trade activities,” he added.