Ex-India hot dip galvanized (HDG) coil prices have edged up slightly over the past week, driven by local mills largely aligning them with the recent rise in flat product prices. However, export trade conditions have remained muted, and a few unconfirmed discounted deals are reported to have been concluded in the Middle East.
Sources said that ex-India HDG (grade Z120) prices have been pushed up by $5-10/mt week on week to the range of $675-710/mt FOB, but overall trade activity has continued to remain negligible, with buyers in Europe absent owing to uncertainties regarding the effective carbon tax.
Meanwhile, according to sources, there has been market chatter about a few small-volume deals reported to have been concluded in the Middle East at discounts to offers, although these have not been confirmed by the parties involved. For example, a deal for 8,000 mt delivery to Bahrain has been heard at $655/mt FOB net of discount. Another trade for 12,000 mt for delivery to the UAE is said to have been done in the range of $650-660/mt FOB, sources said.
“The increase in ex-India prices is more of an internal adjustment for mills to keep them more aligned to the flat product intermediate, the price of which has surged in recent weeks. Mills are unwilling to confirm stray discounted sales owing to strategic reasons as active buyers are very few,” a source affiliated to ArcelorMittal Nippon Steel Limited told SteelOrbis.
“Large mills will keep export allocations to a minimum for the last quarter as European buying will be low, while other destinations will remain price-sensitive. Considering the improvements seen in the local market both in demand and margins, sellers will be unwilling to cut ex-India offers to push sales,” another source said.
