Ex-India hot dip galvanized (HDG) coil prices have been kept stable over the past week amid very subdued trading activity just about kept alive by a few small-volume trades at undisclosed discounts, SteelOrbis learned from trade and industry circles on Thursday, February 6.
Sources said that ex-India HDG (grade Z120) prices have been kept unchanged in the range of $710-740/mt FOB, but deals were at a discount and, although not confirmed, the final prices have been below $700/mt FOB. “An eastern India-based mill reported a deal for 3,000 mt at $720-730/mt FOB, with a Singapore-based trading firm for onward sales, but the final invoice price was significantly lower net of the undisclosed discount,” a market insider told SteelOrbis.
Similarly, another large exclusively flat product producing mill reported a deal for 5,000 mt for delivery to the UAE at $710/mt FOB but, according to sources, the final invoice price was at least $10/mt lower.
“While we are not selling HDG overseas, from our assessment the recent purchases were possibly for meeting unplanned immediate requirements and hence not an indication of demand or a trend,” an official at a private mill told SteelOrbis.
“We do not have significant export allocations for the current last quarter, but we are continuously assessing various markets. Europe holds the key. Local mills are attempting to increase prices but weakness in key economies like Germany and buyers’ resistance are prompting distributors to defer imports. Changes in the global tariff regime are the new elephant in the room. Both buyers and sellers are hence awaiting more clarity,” he added.