Ex-India hot dip galvanized (HDG) coil prices have been kept stable over the past week, while some sellers have pulled back lower-priced offers submitted earlier in Europe reacting to hikes seen locally, but overall trade activity has been kept alive only by occasional small-volume deals in the Gulf region.
Sources said that ex-India HDG (Grade Z120) has remained stable at $685-700/mt FOB.
Specifically, some sellers which were reported to have submitted offers lower in the range of $650-680/mt FOB earlier in the week have been pulling them back and revising them upwards.
The sources said that exporters attempting to make a mark in Europe were emboldened by reports that prices of local HRC and other flats, including HDG, have edged up by around €30/mt, led by the increase announced by ArcelorMittal.
They said that, while the price increase seen in Europe was not yet sufficient to prompt distributors to increase import exposure, sellers are more optimistic of striking deals if the trend consolidates in the coming weeks.
But despite improving sentiments over trends in Europe, ex-India activity has been kept alive by smaller-volume deals in the Middle East but mostly at the lower end of the price range, amid ex-China price competition. In particular, sources said that an eastern India-based integrated mill has reported a trade for 5,000 mt for delivery to Qatar at $685/mt FOB while another tier I mill concluded a sale of 12,000 mt at a slightly lower price of $680/mt FOB for delivery to the UAE.
“Despite the improvement in sentiments backed by the rise in prices seen in China recently, it is not yet got reflected in ex-India trade activity. Consumption is still on the weaker side in Europe. GCC countries are seeing some rise in flat product prices and hence distributors are looking at restocking, but cautiously and they are very price-sensitive,” an affiliate of Tata Steel Limited told SteelOrbis.