Indian exporters’ hot dip galvanized (HDG) coil offers have decreased by $10/mt week on week to $625/mt FOB, the second adjustment in consecutive weeks, but have failed to push volumes overseas with buyers awaiting a further softening of prices, traders said on Thursday, May 16.
Market sources said that the Gulf Cooperation Council (GCC) markets have remained inactive for Ramadan, with virtually no trades being reported during the past week.
At the same time, most buyers in other key markets like Southeast Asia have preferred to postpone their bookings of ex-India HDG expecting a further fall in offers in reaction to the rising trade friction between China and the US, in particular expecting the softening in ex-China offers to gain momentum which would ultimately impact ex-India HDG offers too.
“I do not see shipment volumes out of India rising significantly in the medium term in view of the overall softening of international prices and Indian exporters do not have much pricing power after having adjusted offers in two consecutive weeks,” a Mumbai-based trader said.