Indian exporters’ hot dipped galvanized coil (HDG) offers have marginally decreased for the second consecutive week, edging up by $5/mt week on week to $675/mt FOB. However, no significant transactions have been reported amid the sharper fall in ex-China HDG offer prices, low demand in key overseas markets and higher earnings from domestic sales, traders said on Thursday, October 18.
“While buying interest in the traditional Gulf markets have been low for the past several weeks, buyers from the Southeast Asian region did not show any interest either during the past week,” a Mumbai-based trader said.
“The cut in offer levels was largely notional without any buyers active in the market. At the same time, ex-China HDG offers were seen to be weakening faster. Large Indian exporting steel mills have also withdrawn from overseas markets, as domestic sales earnings have been significantly higher even after factoring in the weakening of the Indian currency and its impact on export earnings,” the trader added.
According to two other traders, HDG prices have softened considerably in Gulf Co-operation Council (GCC) markets and buyers in the region have been seeking additional discounts of $10-15/mt even after cuts in offers, and no transactions have been concluded during the past week as Indian exporters have been unwilling to accede to discounts.