Indian hot dip galvanized (HDG) coil offers to the export markets have declined by $10/mt week on week to $710/mt FOB, with only modest gains in shipment volumes being achieved, traders said on Thursday, October 26.
“The increase in transaction volumes at the lower offer prices has been below expectations, particularly since US buyers did not respond as expected even though local US HDG prices are seen to be firming up,” a Mumbai-based trader said.
“US buyers are reluctant to conclude transactions for large volumes in expectation that Indian offers will fall further and that spreads between import prices and local US HDG prices will become more attractive,” the trader added.
Market sources said demand for Indian HDG in the Gulf Co-operation Council region is also slack, since buyers are possibly waiting for a further reduction in Indian offers and instead prefer ex-China HDG which is about 15 percent cheaper than Indian offers on CFR basis.