Indian export offers for hot dip galvanized (HDG) coils have remained stable during the past week in the range of $830-840/mt CFR US but transactions have been limited as buyers have been restrained by uncertainties surrounding flat product prices in the US, traders said on Thursday, June 25.
"Most flat product prices in the US markets are on an upward curve. But US distributors are anticipating market resistance to higher levels and prefer prices to settle before concluding any import transactions," a Mumbai-based trader said.
"Indian HDG exporters have also been cautious about aggressively pricing offers to keep pushing volumes and this has resulted in dull export trading activity. Ex-China HDG offers have also moved sideways during the past week and hence Indian traders are under no pressure to adjust their prices immediately," the trader added.
Market sources said that the dull market conditions have been accentuated by the sharp fall in business activity across Gulf Cooperation Council (GCC) markets owing to Ramadan.
The sources said that Indian HDG offers at $600-620/mt CFR Gulf have failed to attract interest as most end-users in the Gulf market are not inclined to increase inventories during the current slack season.