Ex-India hot dip galvanized (HDG) coil prices have been kept stable during the past week, with trading showing a mixed trend of optimism in the Middle East market for basic grade, while buyers of higher grades in Europe have almost fallen silent.
More specifically, ex-India HDG Z120 has been kept stable at $825-830/mt FOB amid positive buying support particularly from the UAE, while the strong demand for the higher grades of Z200-240 at a premium seen earlier in the EU region have subsided, amid the reported completion of restocking by distributors and end-users tending to avoid imports at higher tariff rates.
According to sources, an eastern India-based integrated mill has reported a trade for 8,000 mt for delivery to the UAE at $830/mt FOB and another deal for 15,000 mt for delivery to Qatar at $825/mt FOB. Besides, an exclusive flat steel producing integrated mill is heard to have concluded a trade to West Africa at around $825/mt FOB.
Though not confirmed, it was heard in trade circles that an undisclosed seller sold a tonnage of 10,000 mt to a Singapore-based trading firm at $830/mt FOB.
“The shifting demand between various grades is normally expected. It may be noted that not more than one or two local mills normally have export allocations for higher grade HDG and any demand shift towards lower grades brings more sellers into play,” a source at ArcelorMittal Nippon Steel Limited told SteelOrbis.
“Demand looks to be improving in the Middle East and should be sufficient to support local mills to liquidate the limited export allocations for the last quarter even though price realizations will be moderate,” another source said.
