Ex-India hot dipped galvanized (HDG) coil prices have remained relatively unchanged with the silent trade activity prolonged further by nervous market sentiments in the Middle East following fresh geo-political tensions and logistical uncertainties together with weak prices and demand seen in Europe, SteelOrbis learned from trade and industry circles on Thursday, June 19.
Sources said that ex-India HDG (Z120) have been kept stable in range of $700-720/mt FOB but buyers from Middle East almost completely absent from the market in the face of mounting tensions in the region and fears of disruptions in shipping through the Strait of Hormuz. At the same time, considering declining prices across Europe and local mills struggling to improve margins, EU-based distributors are not looking at import sourcing.
“First tariff challenges and then geo-political tensions across geographies have not only impacting steel markets but has upended global trading systems and sentiments. There are too many headwinds to doing cross border business,” a source in ArcelorMittal Nippon Steel Limited told SteelOrbis.
“Unless it is an economic imperative, businesses are looking to remain within domestic market boundaries. In our specific industry, we do not think Indian sellers have much competitive advantage in pushing sales overseas, under current market conditions and exports will continue to remain on fringes,” he added.