Indian exporters’ hot dip galvanized (HDG) coil prices have remained stable at $760/mt FOB during the past week, amid moribund market activity and negligible transaction volumes, traders said on Thursday, May 3.
“While US buyers have been absent from the Indian market ever since the emergence of trade tensions between the US and its trade partners, buyers in the Gulf region are now also deferring transactions and are not responding to offers, possibly owing to the approach of the holy month of Ramadan and the expected fall in overall business activity,” a Mumbai-based trader said.
“While commercial exporters are feeling the pinch of low activity in the market, large exporting steel mills are not impacted as most are focusing on pushing volumes to their domestic market, where prices and margins are healthy,” the trader added.
However, at least two other traders said that the hike in HDG offers effected last month by exporters may have been counter-productive in a market witnessing falling activity. They said the increase in offers had hamstrung exporters in terms of pushing volumes into the Gulf market where, despite the fall in overall activity, buyers were still looking to conclude transactions although only at significantly lower offers or with discounts.