Ex-India hot dip galvanized (HDG) prices have largely remained stable, but trading activity has gained pace significantly backed by increased bookings by buyers in Europe, facing higher prices and tight supplies locally, SteelOrbis learned from trade and industry circles on Thursday, March 16.
Ex-India HDG (Z120-140) prices have been maintained at $950-1,010/mt FOB, while deals were concluded closer to the higher end of the range on back of the rise in the number of bookings for delivery to the EU, but deal volumes have remained on the lower side because of limited exportable volumes available with sellers.
The sources said that the low export volumes available towards the end of the fiscal year have also hamstrung sellers in leveraging revived demand to increase prices, as most deals were concluded after bid volumes were pruned.
An eastern India-based mill booked 15,000 mt for end-of-April shipment to Antwerp at around $990/mt FOB and another smaller tonnage of 5,000 mt was sold to a buyer in West Africa at an even higher price, reported at above $1,050/mt FOB, though such a high price has been explained by the short lead time and probably a higher zinc coating.
A western India-based integrated mill also reported a booking for 12,000 mt also for Antwerp at around $995/mt FOB and another deal for 5,000 mt for Italy at $990/mt FOB, sources said.
“Mills across Europe have completed the latest round of price hikes but there is still some tightness in the market. Ex-India HDG is still competitive and buyers are seeking urgent deliveries, placing a lot of bids with Indian mills,” a source from an Indian mill said.
“But the offer prices will remain stable as mills do not have a large volume available. If you don’t have the volumes as per bids received, you cannot maximize price realizations. Buyers generally do not like to break-up bid volumes to multiple suppliers. Indian mills are readying to submit higher offers as soon as allocation for the future period is finalized. That is from around mid-April onwards,” a source said.
