Ex-India hot dip galvanized (HDG) prices have firmed up supported by the general hardening of flat product prices and revived buying from Africa and the Gulf region, while buyers from the EU are also back in the market ahead of the holidays although for limited trade volumes, SteelOrbis learned from trade and industry circles on Thursday, December 22.
Ex-India Z220-240 HDG prices have been pushed up by an average of $20-30/mt to the range of $850-870/mt FOB as trading activity has bounced back from almost zero in earlier weeks and with sellers having very low export allocations for the last quarter of the current fiscal.
According to sources, a western Indian flat product integrated mill has reported a trade for 8,000 mt for February shipment to Nigeria at around $850-860/mt FOB, while also concluding a deal for delivery of 5,000 mt to the UAE at $865/mt FOB.
A trade for 12,000 mt was concluded by an eastern India-based mill for Rotterdam delivery at $865/mt FOB although the final destination could not be confirmed in market circles.
The same seller closed a trade for 5,000 mt with a buyer from Italy at $855/mt FOB, sources said.
The Hong Kong-based arm of a large Japan-based trading company concluded a trade for 10,000-12,000 mt with an Indian integrated mill at $850-860/mt FOB, sources said.
The reference price of Z120 Indian coils has been assessed after the latest deals for the higher zinc coating at $760-770/mt FOB, up by $25/mt on average over the past week.
“Some amount of restocking for 2023 seems to be emerging from select markets. The firming up of flat product prices in Asian region is being reflected in higher value-added products like HDG and hence Indian sellers have been successful in improving sales realizations,” a source at ArcelorMittal Nippon Steel Limited said.
“This is a positive for Indian mills as they are reducing prices for auto grade steel in the local market. But whether the gains can consolidate will only be clear once business activity resumes after the holidays ahead,” he said.