Indian hot dipped galvanized (HDG) exporters have reversed price hike of last month, cutting their offers by $10/mt to around $840/mt CFR US in an attempt to push volumes in wake of increases in flat steel product prices in the US markets, traders said on Thursday, May 7.
According to a Mumbai-based trader, local exporters have seized the opportunity of a weak Indian rupee at below the INR 63 to a dollar mark for downward adjustments in offer levels to push volumes.
However, the pricing strategy has showed limited success since several US buyers are not sure of the future trend of local flat steel prices, the trader said.
A section of buyers said that US steel mills have effected price hikes during the past week but the market is unsure whether higher prices would be absorbed, while a resistance can lead to fresh fall and hence importers are cautious and on wait and watch mode rather than commit fresh import transactions, the trader added.
A section of market sources state the reports of US steel imports falling about 9 percent during April on month-on-month basis and lot of talk about trade petitions have unnerved US importers, causing buyers refusing to bite lower offers from Indian HDG exporters.
However, for Gulf Co-operation Council (GCC) markets, local HDG exporters have maintained their offers at around $600/mt CFR Gulf, after reducing their prices by $10/mt last month but transaction volumes are reportedly at low levels on tepid demand and reports of stock pile up with distributors in the region.