A lull has descended on Indian hot dip galvanized (HDG) export activity over the past week and, even though prices have been maintained at higher levels, sellers have largely stayed away from responding to bids, due to challenges in meeting delivery timelines in contracts, SteelOrbis learned from trade and industry circles on Thursday, May 20.
Ex-India HDG prices have been kept unchanged at $1,200-1,250/mt FOB amid a healthy number of enquiries, but actual trades have come to a near halt as sellers are unable to either move consignments from mills to ports or are facing delays in loading as ports, particularly on the west coast, are operating at low levels.
It has been also pointed out that several west coast ports at Kandla, Mundra and Nhava Sheva have been impacted by Cyclone Tauktae and had brought down operating levels even before the cyclone made landfall, compounding logistical uncertainties and challenges facing exporters.
“The demand side remains very positive even though trends are very mixed. Buyers in key markets like the Gulf are still in wait-and-watch mode after the Eid holidays, contrary to expectations. At the same time, ex-China offer volumes are increasing. But prices are still holding ground in view of the strong demand and persistent shortage in the EU,” an official from ArcelorMittal Nippon Steel Limited said.
“There are issues on the supply side that are holding back exporters. Lockdown restrictions and their impact on logistics have been compounded by cyclone warnings across the coast affecting port operations. Exporters are willing to take a pause for some normalcy to return. The market is expected to remain robust in the medium term,” he said.
