Ex-India hot dip galvanized (HDG)) coil prices have been kept stable amid silent trading conditions with neither bids or offers reported by large mills, with buyers in the Middle East and Europe staying on the sidelines anticipating declines in flat product prices to continue, coupled with reluctance to restock due to year-end considerations, SteelOrbis learned from trade and industry circles on Thursday, November 28.
Sources said that ex-India HDG (grade Z120) prices are unchanged at $700-720/mt FOB and speculation on deeply discounted sales heard in earlier weeks fizzled out, further confirming the inactive export market conditions.
“Indian HDG exports have been in a limbo and are expected to remain so in the short and medium term. Both buyers and sellers are uncertain of short-term price trends and prefer to wait and watch,” an official at Tata Steel Limited told SteelOrbis.
Offers for ex-India HDG Z120 have been voiced at around $770-780/mt CFR southern Europe, the same as last week. According to sources, distributors in Europe are heard to be fully stocked for now and are yet to commence bookings for January-February deliveries. "In the longer term, we are keeping a close watch on some industry dynamics that will impact the steel trade. In particular, the hike in prices of flat products announced by ArcelorMittal may lead to a reassessment of import economics by distributors in the west. Also, the same steel producer is delaying new investments in Europe, in view of the policy uncertainty regarding government support for the transition to low-carbon production processes. This will impact supply dynamics in the region in the longer term. Of course, any positive from this in terms of Indian exports is likely to be offset by the carbon border adjustment mechanism (CBAM). Hence, there are several moving points on the horizon to make any definitive short-term forecast on steel trade in general,” he added.