Indian export offers for hot dip galvanized (HDG) have remained stable during the past week in the range of $700-710/mt FOB, even though transaction volumes have been falling sharply owing to year-end considerations, though the export market outlook continues to be positive amid reports of a further price push for flat steel products in the US in the New Year, traders said on Thursday, December 29.
“After three consecutive hikes in export offers in the current month, market activity has eased off largely owing to seasonal holidays in most overseas markets,” a Mumbai-based trader said.
“But Indian exporters maintain their bullishness for a rebound in transaction volumes in the coming weeks as reports indicate that US steel mills will continue to push up prices and this may provide fresh impetus among HDG importers in the US to look at the Indian market,” the trader added.
However, one leading flat steel exporting trader said that January would see “exports entering into unknown territory” with a new US administration coming into office.
Both the above traders said that there are considerable downside risks to the international trading environment in general and to steel imports into the US market in particular in view of the new US administration’s threat of tariff imposition. The traders also pointed to EU antidumping investigations into Chinese HDG, adding that such trade measures could become contagious.