Indian hot dip galvanized (HDG) coil export offers have officially been kept unchanged at $840-850/mt FOB, though producers are accepting export demand at $20-30/mt lower in order to retain customers, traders said on Thursday, September 6.
"The lower export price offers are almost equivalent to the lower price of HDG coils ex-China. With the US market, a major destination for Indian HDG, still not showing signs of revival, Indian producers are accepting a lower price to maintain the crucial market," a Mumbai-based trader said.
"Production levels of HDG coils have also risen in South Korea and Russia over the past one month, and US demand was not sufficient to take care of the oversupply," he added.
According to an official in an eastern Indian steel mill which produces HDG coils, overseas enquiries have fallen sharply over the past one week and the few orders concluded ex-Mumbai are negotiated at a lower price.
"Indian HDG coil producers believe that the US market is close to the bottom, but are waiting for another $20-30/mt drop," the official said.