Indian HDG export offers flat despite low booking volumes from US

Last week, Indian hot dip galvanized (HDG) coil export offer prices trended sideways at $880/mt CFR US, amid continued enquiries though with a sharp fall in bookings, traders said.
 
"Booking volumes, according to market reports, were very low during the week. US buyers were engaged in year-end inventory control and, with holidays ahead, were not committing bookings," a Mumbai-based exporter said.
 
"However, the low volume of bookings was not being perceived as a reflection of change in demand. Sustained enquiries were interpreted as sustained demand in the US, with volumes expected to pick up in the New Year," the trader added.
 
A Kolkata-based trader citing a report on December steel imports in the US said that inventories of steel distributors in US had fallen sharply during the month and restocking activity after the holidays would support Indian HDG export offer prices, which have a short-term upward potential of $20-30/mt with the revival of volumes.
 
While Indian exporters have been maintaining their export offers at $880-890/mt CFR US, exporters from China and South Korea have already increased their quotations based on the shortage in their domestic market and this will have a bullish impact on Indian prices too, the trader added.