Last week Indian exporters of hot dip galvanized (HDG) coils maintained offers at higher levels ranging between $890-895/mt CFR US despite the low volume of transactions, traders said on Monday, January 14.
"The week before was very quiet market for HDG exports. Inquiries and bookings from US steel distributors were very low but offers remained steady," said a Mumbai-based trader.
"Indian exporters did not soften offers in view of the steadily rising local price of hot rolled coil (HRC) prices. HDG export prices were also supported by a modest revival in inquiries from the Gulf region although no bookings were reported during the week," the trader added.
According to sources, HDG exporters have continued to be bullish on the prospects of US buying gaining momentum although bookings from the Americas were low. Despite the lull in US buying continuing since the New Year, US stock data available in Indian markets indicate that bookings for March-April shipments will begin over the next few weeks, the sources added.
"Reports received here indicate that Chinese HDG exporters have been receiving very healthy bookings despite increasing offers by around $10/mt FOB. There is significant interest in booking Indian HDG since there is always a lag between the Chinese and Indian markets," a Kolkata-based exporter said.
"Last week Indian HDG offers appeared to have a distinct short-term upward potential of $7-12/mt, and even small bookings from the Gulf would enable prices to consolidate at higher levels," the exporter added.