US buyers wary of booking HDG futures

With the exception of bookings from Brazilian steel producers, interest in booking US import HDG tonnages continues to trend light.  In light of the recent announcement that preliminary margins against Indian producers in the still-going HDG CVD trade case were tallied at 7.71 percent for Uttam Galva Steels Limited, 2.85 percent for JSW Steel Limited, and 5.28 percent for all other Indian producers named in the trade case, Indian producers have remerged with new offers in hopes of enticing US buyers to place orders.

Sources close to SteelOrbis, however, say that few traders are booking offshore orders due to ongoing pricing volatility within the US domestic flat rolled steel market.  “There may be some people who are booking 200 tons here, or 300 tons there, but for the most part, it’s very quiet,” said one Texas-based trader.  “Who wants to take a gamble on something that’s not going to arrive for 120 days, when no one is convinced the US flat rolled steel market has reached bottom?”  Other sources close to SteelOrbis have said that while inventories are being slowly worked through, “there’s still more steel in the market than what’s needed based on current demand.”