Indian export offers for hot dip galvanized (HDG) coils have remained stable at around $825/mt CFR US during the past week, but virtually no significant transactions have been reported in the market due to the ongoing decrease in flat product prices across North American markets and amid rising inventories at US distributors, traders said on Thursday, November 5.
According to a Mumbai-based trader, US buyers have been absent from the Indian market as sentiment in the US is negative, while even Chinese export shipments have fallen dramatically during the past week.
The trader said that, with Chinese exports slowing down, Indian HDG exporters have been unable to match Chinese export offers, and so have remained inactive during the past week since Chinese HDG offers have been at least $25-30/mt lower than Indian offers on FOB basis.
Furthermore, in the Gulf Co-operation Council (GCC) countries interest in Indian HDG has remained low, since buyers in the market have been facing falling demand and high inventories, market sources said.
Indian offers in range of $580-590/mt CFR Gulf have not found any takers and, with the Indian festival season next week, Indian exporters have been reluctant to adjust their offer prices, the sources added.