Indian HDG exports offers soften further amid Chinese oversupply

Indian export offers for hot dip galvanized (HDG) coils have lost another $5/mt during the past week, declining to $845/mt CFR US for June-July bookings, in response to oversupply ex-China, traders said on Tuesday, May 7.
 
According to a Mumbai-based traders, exporters are forced to complete transactions lower than the previous week's range of around  $850-855/mt CFR in response to Chinese offers, which have softened by $10-15/mt for the second consecutive week.
 
However, the trader said that US buyers are cautious and bookings are of relatively low volumes. Indian  HDG exporters have reduced their offers to the Gulf region by a margin of $5-10/mt to the range of $750-760 CFR, but buyers have declined to complete transactions anticipating a further slide in offers.
 
Market sources have said that HDG producers-exporters will be hamstrung in lowering offers to match the ex-China offers, since, unlike other markets, Indian domestic prices of hot rolled coil (HRC) are maintaining higher levels.
 
Hence, in the absence of a strong demand uptick in the US and Gulf Co-operation Council (GCC) markets, Indian HDG exporters will restrict themselves to booking small volumes to maintain their market presence.