Ex-India hot dip galvanized (HDG) prices for Z120 material have remained at relatively stable levels as compared to last week, given no visible recovery of demand in the main trade destinations. However, according to sources, Indian suppliers of higher grade HDG have managed to nudge up their prices slightly amid improved sentiments among local mills following fresh buying interest emerging from the EU and the Middle East.
Particularly, offers for ex-India HDG Z120 have been estimated at $835-840/mt FOB, versus $830-870/mt FOB, as, according to sources, Indian mills who were targeting $870/mt last week have withdrawn their offers for now. Offers from one of the Indian mills to southern Europe have been heard at $890-900/mt CFR, which translates to around $835-840/mt FOB. “This price seems low, but the mill said it is not easy to sell,” a Spanish trader told SteelOrbis.
However, more interest in higher grade ex-India HDG Z240 has been reported in Italy and the Middle East this week, while offer prices are standing at around $880-890/mt FOB. The sources said that a western India-based exclusive flat steel producing integrated mill has reported a trade for 15,000 mt for Marghera port, Italy, at $880/mt FOB, while reporting another trade for 12,000 mt for delivery to the UAE at $885/mt FOB. Besides, an eastern India-based mill has reported a trade for 15,000 mt for delivery to Bahrain at $880-885/mt FOB.
“The slight improvement in the flow of enquiries for higher grade HDG from the Middle East and select regions in the EU has bolstered local sellers to attempt a price increase. They also reckon that, with large mills in the EU effecting price increases of an average €50/mt in early January, there was some headroom to push exports at higher prices too,” a source at ArcelorMittal Nippon Steel Limited said.
“Activity in the Middle East looks promising. As far as the EU market is concerned, there are challenges of rising freight costs and this will rein in attempts to push up prices too rapidly, as buyers are very sensitive to the CFR price and have alternatives available,” another source said.