Indian exporters of hot dip galvanized (HDG) coil have maintained their offers unchanged at $720/mt FOB and even the increase in US prices has failed to have any impact on export transaction volumes from India, traders said on Thursday, November 30.
“US HDG prices are seen to be bouncing back but, given the cautious mood among US steel distributors, there is little interest in imports,” a Mumbai-based trader said.
“Indian HDG exporters may have overplayed their pricing strategy, having increased offers twice within the last 30 days on the back of strong domestic demand at the cost of overseas shipments,” the trader said.
“Given sustained domestic demand, I do not think Indian HDG exporters will adjust offers to push export volumes,” the trader added.
Market sources said that transaction activity in the Gulf Co-operation Council (GCC) region has also remained at very low levels in the face of weak demand and falling prices. They said that ex-China HDG offers in the GCC market are down about $20/mt and are being transacted in the range of $740-750/mt CFR Gulf, which is not remunerative for Indian exporters.
