Indian exporters of hot dip galvanized (HDG) coil have maintained their offers unchanged at $760/mt FOB during the past week but some exporters are reported to be offering discounts to Gulf buyers in order to push volumes in Gulf Cooperation Council (GCC) markets, traders said on Thursday, March 22.
“With shipments to the US virtually drying up after the imposition of tariffs, Indian exporters are reportedly offering discounts in the range of $10-20/mt to trigger some buying interest in the Gulf region,” a Mumbai-based trader said.
“Indian exporters are starting to accede to demands from Gulf buyers for discounts on HDG offers. However, transaction volumes have continued to be low despite the discounts given the tepid demand in Gulf markets,” the trader added.
According to two other traders, exporters are mostly expected to formalize the discounts through lower offer prices, considering the steady fall in ex-China HDG offers.
“The various markets are characterized by a lack of equilibrium following tariff impositions by the US and uncertainties over which imports will be able to secure exemptions. The changing dynamics will cause most buyers across the various markets to remain cautious as exporters continue to realign their market focus,” the two traders averred.