Indian exporters of hot dipped galvanized (HDG) coils came under pressures of falling bid prices in key markets like Gulf and were forced to lower offers by $10/mt to $540/mt FOB, but buyers were expecting the downturn in flat product prices to gather momentum, traders said on Thursday.
“Exporters who marginally increased offers earlier in the month came under pressure of falling prices in Gulf Co-operation Council (GCC) and were forced to lower offers,” a Mumbai based trader said.
“But even lower offers did to elicit any response from buyers in key markets. Most buyers were expecting flat product prices to continue to seek lower levels in view of higher shipments and buyers were preferring different sources even for their comparatively low volume bookings,” he added.
Market sources said that the slight revival in buying interest seen earlier in the month fizzled out. Tightening of production in China following winter pollution restriction on steel mills is not expected to be as sharp as apprehended and prospects of near normal supplies dampened overall offers triggering interest in ex-Indian HDG shifting out.