Indian export offers for hot dip
galvanized (HDG) coils have remained stable during the past week in the range of $860-880/mt CFR US with support from a modest improvement in demand from US buyers, traders said on Wednesday, September 10.
According to two Mumbai-based traders, interest in Indian HDG from US buyers has improved and transaction volumes would have been much higher but for the slight uncertainty in the US market which surfaced later in the week.
The traders said that local US flat steel product prices have softened towards close of the week and several US distributors are uncertain whether this constitutes a new trend or is just a temporary technical correction and so they have refrained from concluding large transactions from the Indian market.
However, Indian HDG exporters are optimistic that US steel prices will find higher levels over the next quarter and that they will be able to push higher volumes into the US market, the traders said, adding, however, that the caveat would be the receding of risks of trade action by US trade regulatory authorities.
At the same time, local traders have expressed concern over the sustained lull in demand from markets in the Gulf Co-operation Council (GCC) region, and sources said that no significant transactions have been reported from the region during the past month and a half.
The sources said that business activity with buyers in the GCC is not expected to revive over the next one month or so since the region is expected to enter a holiday season again starting in October and hence aggregate Indian HDG exports can be expected to remain low in volume terms.