European hot-dipped galvanized prices were heard higher in the market following steep increases announced by Arcelor Mittal last week, and amid stringent supply restraints weighing on buyers, who were unable to locate material in the domestic market, sources told S&P Global Platts.
Demand was heard to be healthy — primarily from automotive and white goods industries — but also for commodity products, though it was difficult to finalize transactions due to ongoing supply issues.
“Every day we receive 20 [HDG] requests from people, but I decided to not give material — but in this moment they are asking me because they don’t find it from their main channels,” an Italy-based service center source said, with HDG lead times heard for August.
The same source noted an HDG deal for Eur1,095/mt ex-works Italy, with tradable values in Northern Europe as high as Eur1,100/mt ex-works Ruhr.
Meanwhile, import prices for HDG were heard at Eur1,200/mt CIF Italy Ports ex-Far East for shipping at the end of August and arrival in October, and into CIF Antwerp at Eur1,170/mt ex-Vietnam.
Due to the short domestic supply, a Benelux buyer source said they were combining west European material with imports from Vietnam, India and Taiwan available for delivery in Q3.
Service centers were said to have just two months of visibility and offering ex-stock where possible, an Italian mill source said, with some new stock heard to be available after the delivery of delayed material from mills.
— Amanda Flint