Indian hot dip galvanized (HDG) export offers have remained unchanged during the past week in the range of $635-650/mt FOB even though transaction volume has persisted at negligible levels as buyers in the US stayed away due to the declines seen in domestic HDG prices in the US and low business activity in Gulf Co-operation Council (GCC) markets owing to Eid holidays, traders said on Thursday, September 15.
"Reports received from our buyers indicate that US distributors are carrying high inventories after flat product imports into the US peaked during July-August and hence they are taking a pause," a Mumbai-based trader said.
"At the same time, US buyers are waiting for their domestic flat product prices to bottom out before committing fresh overseas transactions," the trader added.
However a section of market sources said that larger Indian local steel mills are in no mood to adjust their offer levels to push volumes since the Indian currency has been trending either directions.
The sources also said that the large steel mills are booking large volume export transactions for other flat products like HRC and CRC in South East Asian markets like Indonesia and Malaysia and are unlikely to adjust their offers as their foreign currency earnings are boosted by exports to these newer markets.