Indian hot dip galvanized (HDG) coil export prices have remained steady at $840/mt CFR and exporters have been able to secure bookings at this level without offering discounts and thereby have increased their margin by $10-15/mt, amid improved buying interest from the US, local Indian traders said on Friday, September 28.
However, enquiries from the EU have remained weak amid continued depressed demand from that region, a Mumbai-based trader said.
"HDG export prices are expected to be range-bound since EU import prices have remained depressed and no enquiries are reported from the Middle East markets," the trader said.
According to an eastern India-based trader, HDG exporters have stopped lowering prices to revive interest in EU buying and instead are adjusting production levels and maintaining margins from domestic sales and exports to the US and new markets.
"Even if volumes from the US are low, prices will remain steady, contrary to the discounting war seen in the previous month aimed at reviving interest in the EU," the trader said.
Indian HDG exports during April-August 2012 at 642,000 mt were the highest product category in total steel exports from the country which reached 1,919,000 mt for the period.