Ex-India hot dip galvanized (HDG) trade activity has bounced back with sellers seeing an improvement in Europe, SteelOrbis has learned from trade and industry circles.
Ex-India HDG prices have reached $880-900/mt FOB for Z120-140 coils.
In Europe, Indian mills have remained competitive with the latest offer levels reported at $945-965/mt CFR Italy, which translates to $885-895/mt FOB. The mentioned levels are for 0.5 mm Z120 coils.
The sources said that a western India-based mill concluded a trade for shipment to Spain in April at $890/mt FOB, slightly higher than a trade concluded at $875/mt for 8,000 mt for delivery to Oman.
Similarly, an eastern India-based mill has reported a trade with an EU-based trading firm at $885/mt FOB and another tonnage for delivery to Egypt at around $880/mt FOB, the sources said.
“Gulf buyers are reasonably stocked and are cautious in committing imports. But overall trade activity is being supported by the rise in prices effected by the US and Europe-based mills,” an official at a private mill said.
“But we do not see dramatic rise in volumes of overseas sales by domestic mills in the coming quarters in view of the limited export allocations. Bookings by local automobile companies are rising steadily, for their export production of passenger cars, requiring high value-added HDG. Indian passenger car exports were up 43 percent in 2022 and, with companies setting higher export targets, domestic demand for the critical input for export production of cars is rising,” he said.
