Indian exporters of hot dip
galvanized (HDG) coil have increased their offers during the past week by a significant margin of around $20/mt to $710/mt FOB, and have still been able to improve their transaction volumes, traders said on Thursday, March 9.
"Reports indicate that US steel flat product producers have completed their latest round of price hikes and US distributors are increasingly looking at imports. This has enabled Indian HDG exporters to push through the much-expected increase in their offers without risking export volumes," a Mumbai-based trader said.
"On the contrary, HDG export volumes are reported to have improved during the past week despite the higher offer levels," the trader added.
Market sources said that several US distributors have reported significant optimism for US flat steel product prices during the current year and this should bode well for distributors increasingly looking at imports and so the hike in Indian HDG offers will be absorbed by overseas buyers.
However, at least two traders cautioned that optimism over US domestic flat product price increases, translating to higher interest in imports will need to be tempered by what they called the "Trump effect," or persistent fears of higher tariff imposition on imported HDG.