Indian exporter of hot dip galvanized (HDG) coil have lowered their offers by $10/mt week on week to $660/mt FOB triggering a rise in the number of contracts concluded during the past week, but the average volumes in deals has continued to be limited, with buyers in key markets remaining cautious, traders said on Thursday, April 11.
“Indian commercial exporters have adjusted their offers in line with ex-China offers. The positive side is that this decision has prompted an increase in buying interest and trading activity, but on the other hand the average volume in contracts has remained modest,” a Mumbai-based trader said.
Market sources said that most of the export activity has been concluded with buyers in Gulf-Cooperation Council (GCC) markets and Vietnam.
According to sources, though there has been a greater number of Gulf buyers concluding contracts for ex-India HDG, but most have limited their volumes in view of the persistent sluggish demand in that market.
“If the slight revival in buying interest is to be sustained for a few weeks, Indian exporters are likely to go in for another round of price adjustments to boost buying interest and, considering the slight sagging in domestic demand over the past few weeks, large local steel mills will be forced to become more aggressive in pushing volumes overseas,” the Mumbai-based trader added.