Ex-India hot dip galvanized (HDG) coil prices have been increased slightly by sellers taking their cue from the global trends, but market participants are not yet calling it a revival as trades have been few and for low volumes restricted to the Middle East, SteelOrbis learned from trade and industry circles on Thursday, October 10.
Sources said that ex-India HDG (Z120) prices have increased slightly by $10/mt to the range of $730-740/mt FOB, largely based on optimism over improvements in ex-China prices and expectations of greater buying interest. However, the number of trades and volumes have been on the lower side as reflected in a deal confirmed by an eastern India-based integrated mill for 3,000 mt for delivery to the UAE at $735/mt FOB.
Another large western India-based mill has reported a trade for 4,000 mt for delivery to Bahrain at $740/mt FOB, the sources said.
“The prolonged inactive market conditions for the past several weeks have been broken. This is a positive. But we are still cautious as confirmed deals are still very few. We must be cautious and patient for any sustained revival of exports,” a source at ArcelorMittal Nippon Steel Limited told SteelOrbis.
“China remains a worry. The initial optimism stemming from the economic stimulus is fading and considered by many as insufficient for a sustained recovery. Flat product prices in China are also facing downside risks. If this gains momentum, the optimistic green-shoots of hopes of Indian sellers can fade quickly too. Hence, caution remains the key,” another source said.