Ex-India hot dip galvanized (HDG) coil prices have been maintained at higher levels during the past week backed by limited galvanizing capacity utilization by large mills, but trade has remained silent amid a combination of the negatives of weak demand, geopolitical uncertainties and low business activity in the Middle East, SteelOrbis learned from trade and industry circles on Thursday, February 19.
Sources said that tight supplies and higher prices of flat products, as well as a drop in galvanizing by mills, supported offers being maintained at higher levels of $695-730/mt FOB.
However, bids from mainstay export destination like the Middle East have been scarce for a multiple of reasons. While demand in the region has remained on the lower side and buyers have been very price-sensitive, the sources said that the fall in business activity due to Ramadan has also kept buyers on the sidelines.
At the same time, geopolitical factors stemming from uncertainties along the Gulf of Hormuz, a key shipping route, have been weighing on freight and insurance costs, causing buyers in the region to become very cautious, according to sources.
“Current HDG exports are unfavourable for both sellers and buyers. Strong local domestic demand for limited supplies makes price adjustments to push sales overseas unviable for the seller. Overall trade activity is very low in key destinations on the buyers’ side,” an affiliate of Tata Steel Limited told SteelOrbis.
“We can only expect the export market dynamic to change in the first quarter (April-June) of next fiscal 2026-27,” he added.
