Ex-India hot dip galvanized (HDG) coil prices have been maintained unchanged over the past week, but the mood among sellers has been improved by the recent silent trade activity being broken by the emergence of a few trades in the Middle East and significantly these deals were reported at the higher end of the range of offers submitted, SteelOrbis learned from trade and industry circles on Thursday, May 15.
Sources said that ex-India HDG (Z120) is stable in the range of $680-700/mt FOB, but buyers in the Middle East were willing settle deals at the higher end of the range, perceiving that flat product prices have not only bottomed out in the current cycle but that they could enter an uptrend on cue from the latest ex-China offers.
According to the sources, Middle East-based buyers had been staying away from imports in recent weeks and the resultant drawdown on stocks and possible upward movement in prices were prompting fresh bookings.
The sources said that an eastern India-based integrated mill has reported a trade for 12,000 mt for delivery to Oman at $700/mt FOB and a deal for a second tonnage of 15,000 mt for delivery to Bahrain at $710/mt FOB. Another western India-based first-tier mill concluded a sale for delivery to the UAE of 8,000 mt at $690/mt FOB, the sources said.
Besides, some Indian mills are heard to have submitted higher offers at $720-730/mt FOB in Europe, but no deals have been confirmed during the week in review.
“The revival of HDG export activity is a positive. But sustaining it is the challenge ahead. There is a potential demand revival in select destinations, price revival not so much,” an official at a Tata Steel affiliate told SteelOrbis.
“Sellers will be optimistic about pushing ex-India sales for a few more weeks, once bookings for July commence toward the end of May. But pricing will be the key unless there is a significant rebound in the market in China,” he added.