Indian exporters of hot dip galvanized (HDG) coils have maintained their offers unchanged during the past week at $540/mt FOB amid muted trading conditions and generally buyers from key markets not responding to offers submitted, traders said on Thursday, September 19.
Market sources said that, with firm ex-China offers, Indian exporters have been able to maintain prices too but this was at the cost of low trading activity as buyers who are still expecting prices to soften in tandem with other flat products have decided to defer any fresh bookings.
The sources said that in key markets like the Gulf Co-operation Council (GCC) weak demand coupled with soft prices has prompted most buyers not to respond of offers for ex-India HDG.
“Large local steel mills which dominate the HDG export markets have been waiting for signals from ex-China offers and could adjust offers to push volumes overseas. But I think, any further price adjustments from these steel mills would come after the festival weeks next month, when a clearer picture of domestic demand will emerge,” a Mumbai-based trader said.
“Indian HDG producers are keeping a close watch on domestic zinc prices which are currently at a five-month low. If this downtrend in prices of a key input gathers momentum over the next few weeks, large exporting steel mills will find a window to more aggressively price export offers in line with the local currency stabilizing below the INR 71.50 to the dollar mark,” he added