Ex-India hot dip galvanized (HDG) coil prices have remained stable, even as trading activity has slowed. Bids from the Middle East were reported to be too low to conclude deals, while post-Easter restocking in Europe has also paused, SteelOrbis has learned from trade and industry circles.
Sources said that ex-India HDG (grade Z120) is stable at $680-700/mt FOB, but lower bids at $650-660/mt FOB received from Middle East have proved unworkable for sellers, while European buyers have remained on the sidelines, reported to either be sufficiently stocked or be looking at cheaper alternative import sourcing. However, indicative offers for ex-India HDG have remained at $725-760/mt FOB, depending on the specification of the material.
“Post-Easter restocking closed early in view of the limited demand across Europe. Stray deals seen in earlier weeks have dried up too. There is little sign of a flat product price recovery and bookings for May-June deliveries are possibly complete. It is too early for July bookings for the next quarter to commence. With prices expected to be range-bound, distributors are not in a hurry to restock imported material,” a source at ArcelorMittal Nippon Steel Limited told SteelOrbis.
“Going forward we expect prices to remain range-bound, low activity in Europe and some improvement in the Middle East with buyers likely to return. As regards sellers, they will not be too aggressive on the price front as exportable volumes for the current quarter have been generally kept at lower-than-usual levels and pressures to sell overseas will therefore be limited,” the sources added.