Indian hot dip galvanized (HDG) coil export offers have moved sideways at around $850/mt CFR US during the past week, though discounts of $10/mt have been reported as exporters pushed for a greater market share, traders said on Friday, April 3.
According to a Mumbai-based trader, reports have indicated that the slowdown in US flat product imports has continued and buyers are still cautious, but Indian export volumes are up marginally on the back of discount offers.
The trader also said that ex-China HDG offers have increased by $10-15/mt week on week on FOB basis, enabling Indian exporters to gain an edge in pushing volumes after offering discounts.
However, a section of market sources believe that the improvement in volumes is still tenuous and definitely will not evolve as a short-term trend.
The sources said that the downturn in US flat steel prices has yet to be settled and market dynamics are expected to change significantly over the next two months, thereby limiting Indian exporters' ability to push HDG volumes.
"Reports received here indicate that a few US steel mills are about to idle their capacity and domestic inventories are being pushed to lower levels, and so Indian exporters will face adversity in maintaining HDG shipment volumes," the sources said.