Indian hot dip galvanized (HDG) coil exporters have made marginal downward adjustments of $10-15/mt in offers during the past week to $620-635/mt FOB, but transaction volumes have remained restricted with US buyers showing caution as regards concluding fresh bookings of any significant volumes, traders said on Thursday, August 4.
“Reports received from our buyers indicate that US steel mills contrary to market expectations are holding flat product prices stable and most distributors are awaiting a new price direction in the US market before concluding import transactions,” a Mumbai-based trader said.
“Indian HDG exporters have adjusted their offers in view of reports that, despite the caution among buyers, inventories at US distributors are at a low level and it is just a matter of time before import buyers were back and their lower export offers are in anticipation of such a volume push,” the trader added.
Market sources said that the downside from current export offer levels is very limited considering that the Indian currency has appreciated to current levels of INR 66.65 to the US dollar, thereby limiting the ability of exporters to use pricing to push volumes.