Indian hot dip galvanized (HDG) coil exporters have kept their offers unchanged at $715/mt FOB during the past week, but transaction activity has continued to remain sluggish with US buyers staying away and business activity in the Gulf markets at a near standstill, traders said on Thursday, June 22.
"Reports reaching India indicate that the US probe into steel imports under Section 232 is in the final stages and that the US administration will take a hard stance in the decision expected at the end of this month, and this is keeping US buyers away from the Indian market," a Mumbai-based trader said.
"At the same time, US steel prices are seen to be edging down and hence US distributors' unwillingness to conclude fresh overseas transactions," he added.
Market sources said that the lack of business activity in the Gulf Co-operation Council region owing to the approach of the end-of-Ramadan holiday has also aggravated the dull buying activity for Indian exports.
At least two other traders have predicted that large Indian steel mills exporting HDG will have to consider another adjustment in offers of around $15-20/mt next month to maintain their market presence overseas, after already lowering their offers twice in the current month.