Local Indian hot dipped galvanized (HDG) exporters have continued to offer discounts ranging in $10-15/mt during the past week, with offers at $840/mt CFR US but buyers have remained cautious due to US flat steel prices seeking lower levels, traders said on Thursday, April 23.
According to a Mumbai-based trader, several buyers have pulled back from concluding transactions due to falling US flat steel prices.
The trader said that reports indicated that US prices might hit bottom levels but buyers are unlikely to commit transactions in Indian markets until such time as there are clear signals of local US prices reversing and high priced stocks with distributors are fully liquidated.
However, market sources said that transaction volumes have surged in Gulf Co-operation Council (GCC) region with significant number of transactions concluded at $610/mt CFR Gulf.
Current Indian HDG offers are competitive against ex-China HDG shipments which are reportedly in the range of $620-630/mt CFR Gulf and Indian exporters have increased shipments to the region, the sources said.
Also trading activity has increased in Gulf markets, with buyers interpreting current Indian and Chinese HDG offers as a short term low, the sources added.