Indian export offers for hot dip galvanized (HDG) coils have remained stable during the past week at around $855/mt CFR US but transaction volumes have remained limited as US buyers are cautious following reports that the fall in flat steel prices in North American markets will continue for several weeks, traders said on Friday, February 20.
According to a Mumbai-based trader, Indian HDG exports to the US market are being edged out by Chinese exporters.
The trader said that ex-China HDG offers are on average $20-30/mt lower than Indian offers as hefty export subsidies available to Chinese steel mills have enabled them to be more aggressive and be more in tune with falling US prices than India exporters.
Market sources said that several US buyers have sought lower offers from Indian exporters but the latter have been unwilling to respond as margins from export realizations are thin due to higher input cost for Indian steel mills.