Ex-India hot dip galvanized (HDG) coil prices have largely been kept stable over the past week, but trade has fallen silent and sellers have withdrawn discounted offers, while buyers in the Middle East and Europe have become cautious over uncertainties relating to new tariff regimes and the weakening of demand, even causing the stray deals seen earlier to dry, SteelOrbis learned from trade and industry circles on Thursday, February 13.
Sources said that large local mills have kept ex-India HDG (grade Z120) offers unchanged at $710-740/mt FOB but, unlike in earlier weeks, they have halted discounted offers as sustained discounting was unsustainable in view of rising input costs. However, according to market insiders, the tradable prices for ex-India HDG have been estimated by most foreign customers at around $700/mt FOB level.
From the sellers’ point of view, weak signals from sectors like automobile manufacturing in Germany and the rapidly evolving global tariff regime scenarios have undermined distributors’ interest in looking at imports and ‘wait and watch’ has been the preferred stance in trade circles.
“Further discounts to push sales are not sustainable due to costs of inputs including zinc and mills facing challenges in sourcing ex-Australia coking coal in general. Mills are not risking operational viability by continuing to push discounted sales below the $700/mt FOB mark,” a source at ArcelorMittal Nippon Steel Limited told SteelOrbis.
“Buyers in the Middle East are awaiting more favorable prices, anticipating changes and diversion of flow of material across supply chains in response to the new tariff regimes under consideration in several geographies. Prices are showing some positive signs in Europe but are not sufficient for large distributors in the region to look at imports,” another source said.