Ex-India hot dipped galvanized (HDG) coil prices were expected to improve as sellers managed to sell some small volumes of higher zinc material, breaking the prolonged silent market conditions.
Ex-India HDG coil (Z120) was quoted in the range of $780-800/mt FOB, similar to last week, but suppliers were hoping that prices will reach $810/mt FOB soon. The number of deals for base Z120 material remained low, but sentiments were boosted and instilled expectations that it would gain momentum once holidays were over in key destinations like the Middle East.
Sources said that an Gujarat based exclusive flat steel producing integrated mill reported a trade for 2,000 mt for Rotterdam delivery at $875/mt CFR, while another deal was reported for 3,000 mt with a Spain based buyer at $880/mt CFR. There deals translate to $815-825/mt FOB, but both of them are done for HDG Z240-275.
“One sparrow does not make summer. But the HDG export market has been in such a silent spell that even low volume stray deals can be reason for optimism. The positive outlook is also from the fact that trade activity can improve once buyers from Middle East return and support the current green shoot of revival,” an Indian mill said.
“For local mills, the renewal of export trade activity will definitely weigh in on the decision making on export allocations for the first quarter,” the source said.