Ex-India cold rolled coil (CRC) and hot dip galvanized (HDG) coil prices have been corrected down slightly this week given the still extremely quiet trading conditions, especially in the main trade destinations, like Europe. According to sources, only occasional deals mainly for special grade HDG with extra payment have continued to keep some optimism alive at a time when sellers have limited export allocations.
Ex-India CRC prices have settled at around $700-720/mt FOB, versus $710-720/mt FOB two weeks ago, which mainly translates to offers to Europe at $750-770/mt CFR, down by $10/mt on the lower end of the range over the past two weeks.
Meanwhile, ex-India HDG prices have been mainly voiced in the range of $780-810/mt FOB, versus around $810/mt FOB last week. Suppliers in southern Europe have reported ex-India HDG offers at around $835/mt CFR, down by $10/mt week on week, though no deals have been reported so far, as the post-holiday demand recovery in Europe has been slower than initially expected. However, sources said that an Indian integrated mill has reported a trade for 2,000 mt of HDG Z275 for Europe delivery at $880/mt CFR. Such a high price is explained by extras for quality. Besides, an eastern India-based mill has confirmed a trade for 2,000 mt for delivery to the UAE at $830/mt FOB, for HDG Z275 as well.
“Small volumes and higher prices is the new normal for ex-India HDG trade. This is not a problem for sellers as integrated mills have very little carbon steel for the hot dip galvanizing conversion process anyway,” an official at a private mill said.
At least two officials at other integrated producers said aggressive price increases seen in earlier weeks will return very shortly with local zinc prices poised to surge. Meanwhile, steel industry officials said that any rise in zinc prices will be passed onto buyers and, since HDG volumes on offer will continue to remain on the lower side, any resistance to such price increases will not impact sellers.