Ex-India hot dip galvanized (HDG) prices have remained stable over the past week but trading activity has been scarce amid the impact of the surge in freight rates and buyers in the Gulf markets expecting prices to decline, SteelOrbis learned from trade and industry circles on Thursday, August 19.
The tradable level for ex-India HDG is still at $1,070-1,090/mt FOB. Sources said that ocean freight rates have increased three-fold over the past three months and buyers are finding CFR valuations prohibitive, while demand growth is slowing down in the Gulf and the EU region.
“We hear from our buyers that they are waiting for both prices and freight rates to calm down before making bookings. As for sellers, they are not willing to adjust prices immediately as they are nearing medium-term stability. In fact, ex-India prices can see some upside from rising HDG prices in the US and uncertainties over the export tax rebate for ex-China shipments,” a source at ArcelorMittal Nippon Steel (AMNS) said.
“Current ex-India prices are finding some acceptance in the Gulf region, but volumes are still on the lower side,” he added.
Sources said that two deals have been reported to Saudi Arabia. A western India-based integrated steel mill has concluded a trade at $1,080-1,090/mt FOB, while another eastern India mill has reported a sale at $1,090/mt FOB for the base grade, which should be subject to extras.
An eastern India-based mill has reported a trade for an estimated tonnage of 8,000 mt to the Middle East at $1,080/mt FOB, the sources said.