Ex-Indian hot dip galvanized (HDG) coil prices have remained stable amid silent trade conditions, with the continued uncertainty over how far flat steel prices could sink keeping buyers away, while local mills have almost fully withdrawn from export activity, SteelOrbis learned from trade and industry circles on Thursday, April 4.
Sources said that ex-India HDG (Z120) prices are stable at $780-800/mt FOB, but stray bids received were heard as low as $750/mt FOB, but were not accepted by local mills.
According to the sources, buyers in the Middle East are unlikely to mark a presence before mid-April or until after the Eid holiday, while buyers from the EU region are sufficiently stocked with readily available material from local mills and cheaper alternatives from Vietnamese suppliers.
At the same time, buyers in the Asian region have had multiple sourcing options, including ex-China and ex-South Korea supplies at prices significantly lower than offers from Indian mills, the sources said. In particular, offers for ex-China HDG have been estimated at around $635-650/mt FOB, according to SteelOrbis’ data.
“Indian mills face strong challenges in selling higher value-added flat products like HDG overseas as buyers are very price-sensitive. HDG exports will remain on the fringes of exports in the current quarter also,” a source at ArcelorMittal Nippon Steel Limited told SteelOrbis, adding, “Historical trendlines show that ex-India HDG performs better when the global market is on an up-cycle. In a downturn, ex-India HDG does not enjoy much price competitiveness.”