Indian export offers for hot dip galvanized (HDG) coils have been maintained at $520/mt FOB during the past week but demand in the Gulf markets has continued at very low levels, with buyers not responding to offers, while nominal bookings have been reported in the Southeast Asian region though only with additional discounts, traders said on Thursday, October 3.
According to the traders, a few Indian traders have been able to conclude bookings for marginal volumes with buyers in Malaysia but only after conceding to additional 10 percent discount on FOB basis.
“Demand continues to remain low in the Gulf Co-operation Council (GCC) region. Buyers in this market are refusing to respond to offers anticipating that prices are still to hit a bottom and have largely stayed away from any large bookings,” a Mumbai-based trader said.
“Also, both traders and large mills have been unwilling to push exports too aggressively to avoid locking up funds in export pre-shipment taxes and also due to the spate of bank holidays in the current month,” the trader added.
Traders said that absence of business activity from China in view of the national holiday has also contributed to the muted response from buyers expecting a further fall in prices once export offers for ex-China HDG start to come in.