Ex-India hot dip galvanized (HDG) coil prices have remained stable at high levels over the past week , but deals have remained stalled due to the wide bid-offer gap and sellers’ unwillingness to bridge it to push overseas sales, as costs continue to rise and export allocations remain low amid reduced operations at galvanizing furnaces, SteelOrbis has learned from trade and industry sources on Thursday, April 30.
Sources said that ex-India HDG (grade Z120) is quoted in the range of $750–785/mt FOB. Although inquiries have been trickling in from Gulf Cooperation Council (GCC) markets, bids at $700-720/mt FOB have not been acceptable to sellers.
According to sources, most large mills have been optimizing energy consumption by lowering capacity utilization at galvanizing furnaces. As a result, almost the entire limited output has been directed toward domestic sales, with negligible export allocations. Mills are therefore under little pressure to adopt aggressive pricing strategies to push volumes in overseas markets.
“There is moderate demand emerging in a few key destinations. Prices are also showing an upward trend, but not enough for local sellers to conclude deals at a time when export volumes remain low. GCC buyers are seeking discounts on FOB prices to partially offset higher CIF (cost, insurance, and freight) prices, which is not being accepted by sellers,” an affiliate of Tata Steel Limited told SteelOrbis.
“We may see some change in the export priorities of Indian mills in the next quarter if demand and prices continue to strengthen,” he added.
