Indian export offers for hot dip galvanized (HDG) coil have remained unchanged at around $830/mt CFR US during the past week but trading volumes have fallen sharply in the same period since the market is nervous amid reports of a trade petition in the US against galvanized steel product imports, traders said on Thursday, June 4.
"We are not yet clear as to the galvanized product categories in the new trade petition filed. We believe that the trade case is still at a very nascent stage but buyers are cagey and have been declining offers, resulting in only few transactions for low volumes," a Mumbai-based trader said.
"It is true that Indian HDG shipments to the US market had climbed sharply over the past two months and this might have attracted the attention of the US steel mills. But details of the trade case are still sketchy and Indian exporters are keeping a close watch," the trader added.
Market sources said that the local US flat steel prices have been moving upwards and still have upside potential, while Indian HDG exporters have seized the opportunity provided by the weak Indian rupee to successfully push volumes.
However, the threat of trade cases has cast uncertainty over the market and some Indian HDG producers have already been seeking details of the trade cases filed in the US, the sources added.
The lackluster HDG export market has been compounded by the lack of buying interest in the Gulf region.
Sources said that with Ramadan approaching buyers in the Gulf Cooperation Council (GCC) markets have declined offers at around $600/mt CFR Gulf.