Indian HDG export offers firm up on higher US interest but volumes low

In the past week, Indian hot dip galvanized (HDG) coil export offer prices have gained $10-15/mt over the past fortnight to $870-880/mt CFR US ports, and, while exporters are confident of strong demand, volumes transacted so far have been on the low side, Indian HDG traders have said.
 
"Volumes transacted for February shipments are low owing to holiday considerations, but exporters have been able quote higher offers anticipating strong US demand to continue over the next few months," a Mumbai-based trader said.
 
"Other major exporters from China have been able to quote higher prices citing high domestic demand and, in comparison, Indian HDG exports have remained competitive attracting more numerous enquiries but low volume transactions since importers are reluctant to carry stocks for long," the trader added.
 
According to market sources, interest for Indian HDG is completely absent from the European Union and Gulf Co-operation Council (GCC) regions. Producers effecting a price hike for domestic HDG report depressed demand, while buyers in GCC countries are reported to be carrying large inventories and prefer to carry out stocktaking activities coming up to the end of the year, the sources added.
 
"HDG export offers are expected to move sideways within a range of $5/mt through December and the market will lack direction and exporters are reluctant to make bookings anticipating a further rally in prices in the New Year," a Kolkata-based trader said.
 
"With net export realizations getting healthier with the rupee once again losing ground against the dollar, any upside of $10-20/mt in January would revive the market despite the persisting lull in the EU," the trader added.