Ex-India hot dip galvanized (HDG) coil prices have been largely kept stable amid silent trade activity broken only by ongoing deals for small volumes for higher grades, SteelOrbis learned from trade and circles on Thursday, June 12.
Sources said that ex-India HDG (Z120) prices are stable at $700-720/mt FOB. However, according to the sources, the steel market in the EU has become very nervous on reports of surging imports from trade diversion and falling prices. Reports of new market surveillance tools expected to be put into play by the European Commission to monitor and check imports prompted large European distributors to pause new import bookings. Furthermore, talk of the new system to be imposed soon to check imports into EU unnerved importers who called a halt to new bookings.
It was also pointed out by officials at Indian mills that ex-India prices are uncompetitive at current levels and not in line with falling prices in Europe and are unlikely to trigger buying interest after the holiday in the Middle East.
However, amid the quiet export front, at least one large flat steel producing integrated mill has reported a sale of 8,000 mt of high grade HDG (Z275) at $830-840 CFR Antwerp.
“What we are hearing about overseas sales of higher grades over the past couple of weeks is temporary. Some volumes earmarked for domestic consumption for export production of passenger cars have been rendered surplus and are now being attempted to be sold abroad. We assess such surplus stocks to be very limited and near exhaustion. Regular grade HDG is not finding many takers in either the Middle East where distributors are fully stocked or in Europe where prices are under renewed pressure,” a source at ArcelorMittal Nippon Steel Limited told SteelOrbis.
