Indian export offers for hot dip galvanized (HDG) coils have remained stable at around $620-630/mt FOB during the past week, but the discounts have been withdrawn amid reports that US steel mills are attempting to push up galvanized flat products prices, traders said on Thursday, November 17.
"The sharp upturn in the number of enquiries from US buyers has prompted Indian exporters to withdraw discounts. But the rise in the number of enquiries has not matched by higher transaction volumes," a Mumbai-based trader said.
"US buyers have remained cautious. Market participants, buyers and sellers are uncertain over US steel mills' attempt to push up prices. If it is based on indications that the incoming US administration will hike import tariffs in line with election campaign promises, it is definitely not good news for Indian traders," the trader added.
Another leading Mumbai-based trader stated that at least two of his US buyers who sought enquiries but did not conclude transactions said that, even without an immediate hike in import tariffs, the incoming US administration will definitely mean more aggressive trade action will be taken by the US Department of Commerce and so the mood among US buyers as regards imports is cautious.