Indian hot dip galvanized (HDG) coil export offers have languished at around $860/mt CFR US with no significant transactions reported during the past week amid uncertainties in the US market, traders said on Wednesday, July 16.
"There are a lot of uncertainties over US trade actions against hot rolled coil (HRC) imports from China and India. Both US buyers and Indian exporters have been wary of concluding any transactions for HDG too during the week, fearing an expansion of US retaliatory measures," a Mumbai-based trader said.
"US buyers are unlikely to show interest in Indian HDG as they are uncertain about the US government response to the WTO ruling on the issue. The US government has not ruled out an expansion of trade action against other steel products either," he added.
Market sources said that, while Monday's WTO ruling that Indian steel producers did not benefit from government subsidies might limit US trade action, uncertainties persisted in the market over the final response from the US.
"It is a mixed judgement. Important issues have been in our favour, but there are still other issues which we are not happy about," Indian commerce secretary Rajiv Kher said on the WTO ruling.
"On several smaller procedural issues, the ruling was in favour of the US and we will have to continue the case further," Mr. Kher said.
Market sources said that buyers of Indian flat steel products are unlikely to return until such time as it has been made clear whether the US government will persist, recalculate or remove countervailing duties on imports.