Indian export offers for hot dip galvanized (HDG) coils have remained at $870/mt CFR even as US buyers took a pause from concluding deals during the past week amid reports that US steel mills will increase their HDG production, traders said on Wednesday, October 29.
Buyers in the US have held back from concluding transactions amid reports that steel mills in North America will increase production and dealers prefer to wait and watch the market’s ability to absorb higher supplies before concluding deals for imports, two Mumbai-based traders said.
However, Indian exporters have maintained their offer levels unchanged, buoyed by the fact that US steel prices are holding up and some rise is a distinct possibility with an increase in fourth quarter demand, they said. Nevertheless, market sources said that bulk of the shipments into the US markets have consisted of ex-China HDG which are being aggressively priced and at least $15-25/mt cheaper than Indian offers on CFR basis.
At the same time, transaction volumes in the Gulf Cooperation Council (GCC) region have continued to show improvements amid increased business activity, although at lower prices.
Sources said that, while demand in the GCC region is firming up, so too are supplies, particularly of ex-China HDG, in response to which Indian exporters too have pushed volumes at around $700/mt CFR Gulf, down $35/mt from the levels seen earlier in the month.