Ex-India hot dip galvanized (HDG) coil prices have been maintained at higher levels over the past week on the back of limited availability from mills, but trade activity has remained stalled after the failure of negotiations and continued logistical disruptions, SteelOrbis learned from trade and industry circles on Thursday, April 2.
Sources said that ex-India HDG grade Z120 offers have been kept stable at higher levels of $730-765/mt FOB, but mills were heard to be maintaining much lower conversions in the face of energy shortages and supply disruptions hindering the optimal use of galvanizing furnaces.
The mood among sellers has also turned bearish amid reports that a few ongoing sales negotiations were called off following the failure to arrive at acceptable CFR (cost, freight, insurance)-based price contracts, the sources added.
“Both the buyers and the sellers are in logjams of different kinds. Mills are strapped of exportable volumes as the shortage of gas is hindering galvanizing operations. There is low to moderate demand on the buyers’ side but it is a challenge to come to a workable CIF price, given volatile logistical costs,” an official at a large private mill told SteelOrbis.
“We do not see an immediate revival of trade activity in this category. A few negotiations being called off is a big signal that it is better to remain on the sidelines when there are so many sharp variables in global trade,” he added.
