Indian hot dip galvanized (HDG) coils export offers have remained unchanged in the past week at $630-650/mt FOB but market activity has dipped significantly with virtually no transactions for Indian HDG in the US market amid declines in US flat steel products slipping, traders said on Thursday, July 28.
"Having already slackened, transactions to the US have now come to an almost complete halt as US buyers are just not interested," a Mumbai-based trader said.
" US buyers have been telling us that, apart from the fall in flat product prices, most US steel distributors are facing a sharp rise in inventories and are not willing to make any bookings from India," he added.
Market sources said Indian HDG exporters are faced with a dilemma as they are in no position to adjust current offer levels in order to push volumes, given the steadily appreciating Indian currency.
Meanwhile, as regards the Gulf Co-operation Council (GCC) markets, the sources said that Indian HDG offers have remained at $720-730/mt CFR Gulf after the price hike effected earlier in the month.
However, transaction activity has slackened amid a combination of tepid demand and anticipation of a fall in offer levels with Indian exporters thought likely to rolling back earlier hike in offers, the sources added.