Indian export offers for hot dip galvanized (HDG) have remained stable during the past week in the range of $700-710/mt FOB, while transaction activity has remained muted owing to year-end considerations and as US buyers have been awaiting signals from their domestic market, traders said on Thursday, January 5.
“While Indian HDG exporters have preferred to hold their offer levels stable, US buyers are waiting for business activity to pick up in the New Year and to receive definitive signals on whether US mills will continue to push for higher prices or not, and they are also waiting for movements in key pending trade cases,” a Mumbai-based trader said.
“Another key point for Indian exporters is the reduction in Chinese flat steel exporters’ offer prices over the past two weeks and it is not clear whether Indian exporters will be able to revise their offers and compete,” the trader added.
At least two traders believe that Indian exporters will adopt a wait-and-watch policy for a few more weeks and will have to roll back some of their increases effected last month in order to boost transaction activity.
Traders state that Indian HDG export offers may be decreased by $15-20/mt if US buyers continue to stay away from the Indian market during the current month.
However, some market sources countered that Indian producer-exporters are facing a sharp rise in costs like coking coal as well as freight charges and so they will be hamstrung as regards reducing offers in order to push volumes overseas.