Ex-India hot dip galvanized (HDG) coil prices have been kept stable amid more sellers becoming active in submitting offers with moderate success in pushing through deals, SteelOrbis learned from trade and industry circles on Thursday, May 9.
Sources said that ex-India HDG (Z120) prices have been kept unchanged at $770-790/mt FOB, but more mills have been heard to be submitting offers in the Middle East and Europe and trade activity has improved slightly, with deals working out at the higher end of the range, but tonnages have continued to remain relatively small.
The sources said that a western India-based exclusive flat steel producer has reported a trade for 3,000 mt for delivery to Rotterdam at $790/mt FOB, which translates to around $840-845/mt CFR, while an eastern India-based mill is heard to have concluded a trade for 5,000 mt for delivery to the UAE at $785/mt FOB, or around $815-820/mt CFR.
Another large mill has reported a trade for 3,000 mt for Portugal at around $790/mt FOB (around $845/mt CFR), the sources said.
“The HDG export market has moved from completely silent to moderate activity over the past few days. More sellers are active in submitting offers. Buyers in the Middle East and Europe are showing interest, but only cautiously for small tonnages. Possibly these are only ‘test’ purchases,” a source at ArcelorMittal Nippon Steel Limited told SteelOrbis.
“Mills in the west are attempting to push up prices and distributors are possibly making token import commitments ahead of further price consolidation. From the sellers’ point of view, it is still not clear if this trend is gathering momentum as there are several challenges in the market dynamics and import logistics like the costs of freight and insurance,” another source said.