Ex-India hot dip galvanized (HDG) prices have remained stable across grades, but trade activity has almost fallen silent with buyers in the Middle East, the main drivers of export activity lately, taking a pause.
Sources said that ex-India HDG Z120 has remained stable at $825-830/mt FOB and unchanged at $880-890/mt FOB for HDG Z220-240, but no significant trades have been reported during the past week.
The market falling into inactivity can be attributed to several reasons. According to sources, firstly, Middle Eastern buyers who have been aggressive buyers over the past two weeks or so have completed restocking in the current cycle. Secondly, the market is expecting some change in dynamics including price trends after the holiday in China. Thirdly, recently buyers’ interest had been focussed on higher-grade materials and possibly the two main local producers of these grades have exhausted export allocations of higher grades and are not submitting offers.
“The overall mood in Europe is subdued with buyers expecting a price correction for imports following the recent weakness in China. We expect ex-India HDG to remain at the low end both in terms of price and trade volume this last quarter,” a source at ArcelorMittal Nippon Steel told SteelOrbis.