Indian export offers for hot dip galvanized (HDG) coils have continued their downward trend for the second consecutive week, marginally losing $5-10/mt to around $830/mt CFR US, amid reports of rising inventories held by distributors and weak sentiments among buyers, traders said on Thursday, August 6.
According to a Mumbai-based trader, several US buyers have been seeking lower offers due to falling flat product prices in North American markets and the rise in the US steel production, and Indian exporters obliged in order to keep pushing volumes.
However, only transactions for small volumes have been reported in the market during the past week as buyers have been cautious, reflecting the high stock levels at US distributors, the trader added.
Market sources said that HDG offers to Gulf Co-operation Council markets have remained stable at around $590/mt CFR Gulf over the past week, but buyers have been reluctant to conclude transactions anticipating that offers will weaken further.
Indian exporters for their part prefer to wait before revising their offers on the grounds that demand in the Gulf markets has remained strong and opportunities for aggressive pricing have been limited since the Indian rupee has been moving sideways at around the INR 64 to a dollar mark and there are uncertainties over its short-term direction, the sources added.