Ex-India hot dip galvanized (HDG) coil prices have remained stable over the past week, with some sporadic deals reported this week. A few major steel mills mentioned being in “active talks” with EU-based distributors, although deal confirmations are still at an early stage, SteelOrbis learned from trade and industry circles on Thursday, April 3.
Sources said that ex-India HDG prices have officially been kept stable at $700-720/mt FOB. According to market insiders, one sale of an estimated volume of 3,000 mt for delivery to Singapore was reported at $700/mt FOB but the invoice price was slightly lower, net of an undisclosed discount, with a section of the market speculating that the deal price was at around $690/mt FOB.
Another trade for 5,000 mt was concluded by a western India-based exclusive flat steel producing mill for delivery to the UAE at $705/mt FOB, the sources said.
Even though overall trade activity has remained sluggish, at least two large local mills claimed that there has been a rise in negotiations at various levels in response to bids submitted in Europe. However, these mills were quick to clarify that talk of any sales contracts was “premature” as both sides are assessing the market situation and multiple supply options for the next quarter amid changes in trade flow following the impact of US tariffs and countermeasures on global trade.
“Most Indian mills have lower than normal HDG export allocations for the current quarter. There will be low-volume trade in key destinations like the Middle East, while we are still not sure of any quota availability for the current quarter in Europe,” a source at ArcelorMittal Nippon Steel Limited told SteelOrbis.
“However, some local mills are reporting escalating buyer-seller negotiations at a higher level based on offers already submitted. These are more exploratory in nature as both sellers and buyers are assessing supply options at possible ‘fixed price’ contracts for the next quarter. By then, market participants will have greater clarity on the impact of US tariffs and the response from other geographies. There are too many moving parts in determining a workable price,” another source said.
