Indian export offers for hot dip galvanized (HDG) coils have remained unchanged during the past week at $775-780/mt CFR US, while there has been a sharp rise in transaction volumes to the US amid the steady rise in flat product prices in the US market, traders said on Thursday, May 12.
“It seems that the impact of Indian HDG exporters lowering their offers early in the month is kicking in now. There have been more buyers in the market during the week and several exporters have reported significantly higher transaction volumes,” a Mumbai-based trader said.
“Most US buyers present in the Indian market report that US steel mills have hiked their flat product prices and more price revisions are anticipated over the next few weeks, triggering higher bookings in the US of Indian HDG,” the trader added.
Market sources said that there is a lot of talk in the market of HDG exporters considering another round of marginal downward adjustments in offers in the range of $5-10/mt if the current spurt in buying interest is sustained.
The sources said that such adjustments are necessary and that several buyers have been seeking volume discounts in view of the trend of the Indian rupee against the dollar.