Indian export offers for hot dip
galvanized (HDG) coils have remained unchanged during the past week at $750/mt FOB with the inactivity in the market persisting, traders said on Thursday, June 1.
"Despite the expectations of buyers, Indian HDG exporters have deferred any adjustments to their offer price levels in order to push volumes. The continuing strength of the Indian currency against the US dollar does not offer exporters any window to lower offers and compete with Chinese HDG exporters," a Mumbai-based trader said.
"A number of reports suggest that US steel distributors are receiving import offers but are not responding as most are postponing import transactions in view of the softening of US domestic flat product prices," the trader added.
Two other traders said that inactive market conditions have been aggravated by the lack of opportunities in the Gulf Co-Operation Council region owing to Ramadan.
However, the traders said that, if the current lack of transactions persists, exporters will be forced to adjust their offers downwards by $15-20/mt in the coming week, as most will be unable to carry inventories through the current month.