Indian exporters of hot dip galvanized (HDG) coil have cut their offers by $10/mt during the past week to $650/mt FOB in order to push volumes into key markets like the Gulf Co-operation Council (GCC) region and Southeast Asia in spite of falling demand, but they have met with limited success, traders said on Thursday, April 25.
“Ex-China HDG offers have failed to hold on to their higher levels and have been marginally adjusted in a downward direction and Indian commercial exporters have also followed suit,” a Mumbai-based trader said.
“But only very limited volumes have been contracted by buyers in key Indian export destinations like the GCC region where demand has remained sluggish and has indicated a significant overall fall in inward volume shipments during the past week and Indian commercial exporters have also concluded only small-volume transactions despite lowering their offers,” the trader added.
Market sources said that only a modest aggregate volume estimated at around 4,000 mt has been booked by buyers in Indonesia from a western India-based large steel mill.
The sources said that, with ex-China offers poised to be adjusted further, Indian commercial exporters are expected to go in for another round of cuts in offers by at least $10/mt in the coming weeks to be able to maintain a market presence in face of lower interest from buyers in the Gulf.