Indian export offers for hot dip galvanized (HDG) coil have remained unchanged during the past week at $870/mt CFR US, with the support of higher transaction volumes on the back of revived buying interest and anticipations of a reversal of the falling price trends in the US market, traders said on Wednesday, November 5.
According to a Mumbai-based trader, local Indian exporters have been able to book higher HDG shipments for December since US buyers have responded favorably to offers as US steel prices showed early signs of revival.
A few US steel mills have hiked their flat product prices and more are expected to follow, and this has been taken to be an indication of a reversal of falling trends, he said. Sentiment in the Indian market has improved as a result, with anticipations of higher export bookings as US steel prices move up, he added.
Sources, however, said that the upside room for Indian HDG export volumes is limited by ex-China HDG which is being offered aggressively and is priced at least $40-50/mt cheaper than Indian offers on FOB basis.
Meanwhile, the sources said that the brisk transaction activity in the Gulf Co-operation Council (GCC) markets seen since last month is beginning to taper off.
The softening of demand for flat steel products in the GCC region has prompted Indian exporters to lower offers to around $690/mt CFR Gulf, down by $10/mt week on week, the sources added.