Indian export offers for hot dip galvanized (HDG) coils have remained unchanged during the past week at around $880/mt CFR US amid low transaction volumes, as demand in the US market was seen to be wavering, traders said on Thursday, September 18.
According to a Mumbai-based trader, inquiries received by local importers have not been converted into transactions either due to price issues or booking volumes being too low.
Reports received in India indicate that the uptick in demand for imported HDG in the US market has been wavering after the recent upward revision of prices of local flat steel products and consumers are reported to be resisting higher levels, he said. Hence, US buyers have been reluctant to conclude large transactions with Indian HDG exporters and the latter have declined to make any price adjustments to push volumes either, he added.
Market sources, however, said that export sentiments have remained buoyant despite the low volumes during the week, since the dip in US buyers' interest is considered to be a temporary blip and activity in the market is expected to gain momentum by the end of the current month.
The sources also added that, with the Indian currency showing signs of stabilizing above the INR 60 to a dollar mark through the current month, local HDG exporters too will have a window to adjust prices by $10-15/mt to push volumes later in the month.