Over the past week, Indian exporters have increased their hot dip galvanized (HDG) coil offers by about $20/mt to around $790/mt FOB, hoping to take advantage of Chinese mills' suspension of offers ahead of the Chinese New Year holiday, traders said on Thursday, February 15.
“Indian exporters are hoping to push volumes and increase export earnings amid reports that Chinese exporters had suspended submitting offers in view of the holiday. But a section of exporters reported that the increases in offers are being negated as buyers particularly in the US market are seeking discounts to conclude transactions, and so market activity has remained at lower levels,” a Mumbai-based trader said.
Market sources said that exporting steel mills are forced to increase offers after having effected an across-the-board price hike for all flat products and to maintain the difference between the domestic and export price of HDG.
The sources said that Indian exporters are hoping to be able to push higher volumes overseas later during the week-long Chinese holiday, but at least two other traders pointed out that fewer US buyers are active even though US domestic HDG prices were trending upwards early in the month.