During the past week, Indian export offer prices for hot dip galvanized (HDG) coils touched the $900/mt CFR US mark but fell back to $890/mt CFR due to resistance from buyers, traders have said.
"I think Indian exporters have been too optimistic over the US market. HDG exporters tested higher price levels of $900/mt but were forced to roll back and cut offers by $10/mt after buyers retreated without making any bookings," a Mumbai-based trader said.
"There may not have been any fundamental changes in demand in the US markets. But with questions persisting over sustainability of demand, buyers have been resisting higher prices," the trader said.
According to market sources, Indian HDG export offers are under a downside pressure of $10-15/mt, since reports indicate that HDG export offer prices ex-China are showing signs of hitting a plateau.