Ex-India hot dip galvanized (HDG) coil offer prices have increased during the past week, with producers citing tight availability of flat products for conversion and the sharp rise in zinc prices against a backdrop of muted trade activity, SteelOrbis learned from trade and industry circles on Thursday, February 26.
Sources said large mills have increased HDG (grade Z120) prices by around $15/mt to the range of $710-745/mt FOB, with producers citing the sharp rises in prices of zinc in the domestic market. A Maharashtra-based integrated mill is reported to have sold 4,000 mt for delivery to the UAE at $730-745/ mt FOB, while two other deals for 5,000 mt and 3,000 mt were heard in the market, but no details have been available from either the buyer or seller, according to sources.
Meanwhile, mills have claimed that primary zinc producers have been aggressively increasing prices over the past few months, with the latest hike of $54/mt being effected by Hindustan Zinc Limited, the country’s largest integrated producer of the non-ferrous metal.
“More than demand in key overseas outlets, it is the tight supply of flat products available for captive conversion that is prompting producers to increase prices both for domestic and overseas sales,” an official at a large mill told SteelOrbis.
Furthermore, trade activity has also been limited by demand being on the weaker side in the Middle East and owing to non-tariff barriers in Europe. Freight issues and costs along shipping routes through the Strait of Hormuz have also been keeping buyers cautious, he added.
