Indian export offers for hot dip galvanized (HDG) coils have showed mixed trends in the past week, with offers for the US edging down by $5/mt to $840/mt CFR, and offers for the Gulf region remaining at around $750-755/mt CFR, traders said.
According to two trader-exporters based in Mumbai, Indian HDG offers to the US have softened from a lack of any substantial buying interest, whereas prices have remained unchanged for the Gulf Co-operation Council (GCC) region amid marginally improved interest for June shipments.
Market sources said that US steel distributors are cautious about concluding transactions, fearing that the four percent rise in steel import volumes entering the US during April may have pushed the market into an oversupply situation and so they are waiting for a correction during the current month before concluding fresh import bookings.
Market sources have said that most exporters are anticipating a downward price correction of $15-18/mt for hot rolled coil (HRC) by local steel mills in June, which would enable them to cut HDG offers by another $5-10/mt and compete with ex-China HDG in the US markets and increase their June-July shipments.