Indian export offers for hot dip galvanized (HDG) coil have remained unchanged during the past week at around $855/mt CFR US, but transaction volumes have dropped significantly due to reports of high imported flat product inventories in the US market, traders said on Friday, February 13.
According to a Mumbai-based trader, US demand for HDG has been falling and most US steel distributors have built up large inventories since early January amid the sharp falls in Chinese steel prices. After adjusting offers for Indian HDG by about $10/mt early this month, most local exporters have been unwilling to lower their offers further and this has resulted in a sharp dip in volumes as buyers have resisted current offer levels, the trader added.
Sources said that US buyers are nervous due to reports that the US Steel Manufacturers Association is considering trade measures in response to the high imported steel inventories in the US market and hence interest in ex-India products is quite weak.
Fears of fresh trade petitions by US steel manufacturers have prompted buyers to be cautious and to stay away from concluding fresh import deals, the sources added.
US steel product prices are forecast to fall further in February and, with Chinese exporters remaining aggressive, Indian HDG exporters are behind the curve in adjusting offers to keep pushing volumes, the sources added