Ex-India hot dip galvanized (HDG) coil export activity has lapsed into inactivity as the holiday season starts but local mills have continued to increase prices after effecting across-the-board hikes in domestic flat product prices. Besides, mills are anticipating a price rebound in key markets overseas once regular business resumes after the New Year holidays, SteelOrbis learned from trade and industry circles on Thursday, December 29.
Sources said that, despite the absence of any bids from overseas, Indian mills have increased export offers for Z220-240 HDG to $850-885/mt FOB, versus $850-870/mt FOB last week, in line with the domestic pricing strategy of increasing flat product base prices across all product categories.
The reference price for Z120 Indian coils has been assessed at $760-780/mt FOB, up by $5/mt on average over the past week.
“The seasonal lull in the market is expected but there is optimism over trade resuming at a higher level on a selective basis. We assess a recovery in demand and prices in Asia and the Middle East, while the EU market will remain sluggish impacted by a slew of cost issues. Besides, relaxation of Covid-19 restrictions will increase trade activity,” an official at ArcelorMittal Nippon Steel Limited (AMNS) said.
“Prices are near the bottom in most geographies and mills are testing higher prices. This will gain momentum and Indian mills will benefit from the trend. But since the demand revival will remain fragmented and not uniform, Indian mills will continue to remain aggressive to sustain the development of emerging markets like Africa and Latin America where buyers are increasing ex-India sourcing,” he said.