Ex-India hot dip galvanized (HDG) coil prices have remained stable amid inactive market conditions with business yet to pick up after the holidays and given the conflicting outlook, SteelOrbis has learned from trade and industry circles on Thursday, January 5.
Indian sellers have maintained prices for Z220-240 HDG at $850-885/mt FOB after effecting a hike toward the close of last year, but no deals have been reported in the market. The reference price for Z120 Indian coils has remained at $760-780/mt FOB.
According to the sources, while there was optimism over trade activity picking up as business gradually resumes across markets, differences have persisted on the short-term price direction.
Sellers maintaining a bullish stance said that the gas pricing cap in the EU region was a positive and would trigger higher industrial activity leading to the emergence of new bookings from the region. However, a section of producers was more bearish, claiming that the market direction could move either way and there were signs of “fatigue” among buyers in the Gulf region and they were most likely to ease their recent active restocking.
“From the producers' point of view, the domestic market will gain greater prominence in pushing higher-volume sales, considering that HDG is a key input for export production of automobile manufacturers,” an official at a private mill said.
“It is very significant that the domestic automobile industry recorded highest-ever sales of 3.8 million units in 2022. Even more significant is that fact Indian exports of all categories of automobiles jumped 39 percent in 2022, shipping 5.61 million units. As export production of automobiles rises, so will domestic demand for HDG and local mills will have to rework their existing export allocation strategy to meet rising domestic demand,” he said.