Indian hot dip galvanized (HDG) coil exporter offers have remained stable during the past week at $715/mt FOB amid a rising number of inquiries although this was not matched by transaction activity as US buyers continued to be nervous over the ongoing Section 232 probe, traders said on Thursday, June 29.
“US flat steel product prices have been rising and this triggered an increase in inquiries made in the Indian HDG market,” a Mumbai-based trader said.
“However, it is just possible that rise in flat product prices in the US market is more as a reaction as the Trump Administration’s Section 232 probe is nearing completion. Hence, this will not lead to the usual rise in shipments from India and explains the low number of transactions concluded in the Indian market despite the rise in inquiries,” the trader added.
At least two other traders said that ex-China HDG offers have been pushed up in reaction to the rise in US flat product prices and, even though Indian HDG offers remain lower on FOB basis, this has failed to revive transaction volumes.