Ex-India hot dip galvanized (HDG) coil prices have been kept stable by local mills and, even though trade activity has fallen silent, there is some optimism that deals will materialize over the coming weeks, with a few producers in Europe hiking prices and given higher ex-China prices, although antidumping investigations in the EU have tempered the mood slightly.
Sources said that ex-India HDG (Z120) has been maintained at $720-730/mt FOB and sellers have pulled back any discounted offers amid reports of some large mills in Europe starting to hike local prices, which is expected to trigger some interest in imports. However, the sources were quick to add that buyers would still be cautious in committing import trades during the ongoing antidumping investigations.
They said that there were some inquiries from distributors based in the Middle East, but they were not converted into deals for geopolitical reasons in the region and given the uncertainties regarding meeting delivery deadlines on the part of sellers.
“There are expectations of trade activity improving, but this is yet to be translated into reality. Improvement in global flat product prices could lead to more interest in import trade. But there are a lot of headwinds and uncertainties that are making buyers cautious,” a source at ArcelorMittal Nippon Steel Limited told SteelOrbis.
“Another positive is that discounted sales are being pulled back by mills. If conditions continue to show positive signs through the current month, mills will reassess and make export allocations appropriately,” another source said.