Indian HDG export offers fail to attract buyers with US prices falling

Indian exporters of hot dip galvanized (HDG) coils have adjusted their offers during the past week, making a marginal reduction of $5/mt to around $795-800/mt CFR US, but buyers have been reluctant to conclude transactions in view of the decline in flat product prices across North American markets, traders said on Thursday, November 19.
 
"For the second consecutive week, HDG exporters have adjusted their offers, this time by $5/mt, but buying interest is at minimal levels," a Mumbai-based trader said.
 
"Reports received in India indicate that buying sentiment has been impacted by data showing a sharp fall in flat product shipments to the US and by the sustained fall in US prices," the trader said.
 
"However, on the positive side, there are indications that most US steel distributors have already unwinded stocks," he added.
 
However, a section of the market has discounted an immediate revival in buying as year-end considerations will come into play and restocking by US steel distributors is not anticipated before the New Year.
 
"If shipment volumes to the US are to be revived, Indian HDG exporters will have to be much more aggressive but I am not sure if they are in a position to do so since Indian exporters would need to lower their offers by $15-20/mt to be able to push volumes into the US against the backdrop of falling flat product prices in the US market," said another Mumbai-based trader.
 
Sources said that the revival in demand in Gulf Co-operation Council (GCC) markets seen earlier in the month has proved short-lived.
 
Indian HDG offers have remained at $590/mt CFR Gulf, but have found few takers as demand in the Gulf has been tapering off, the sources added.