Indian HDG export offers stable despite low number of transactions

Indian exporters of hot dip galvanized (HDG) coils have maintained their offers at higher levels of $895/mt CFR US citing high prices of hot rolled coils (HRC), but very few transactions were reported for end of March and early April shipments, traders said on Monday, January 29.
 
"US buyers have not been concluding bookings from India. Hence, there seems to have been a lull in conclusion of transactions during the past week," a Mumbai-based trader said.
 
"At the same time, local mill-exporters and traders are bullish on the US markets and interest from the Gulf region has been increasing. HDG export offers are therefore being maintained unchanged, apart from the factor of rising HRC prices," the trader added.
 
Traders said that, according to information received in the Indian market, heavy export bookings have been reported from the Chinese market, with FOB prices ex-China edging up. Hence, inquiries and transactions for April shipments from India are expected to bounce back over the next few weeks, with HDG offers having a small upward potential of $5-10/mt in the short term, the traders said.
 
"The sentiment in HDG exports is very positive, despite information that US steel imports during December 2012 were down. US steel distributors have completed inventory taking and stocks are low which is a positive indicator for Indian exporters," a Kolkata-based trader said.