Indian HDG exports slow down at year-end but offers unchanged

The Indian hot dip galvanized (HDG) export market was hit by a drastic slowdown with the approach of the end of the year with negligible transactions reported during the week although exporters maintained offer price at $880-890/mt CFR US, traders said on Friday, December 28.
 
"Most US steel distributors were completing year-end inventory calculations and refrained from making enquiries owing to holidays," a Mumbai-based trader said.
 
"However, the low enquiries and transactions were not a reflection of the revival of demand in the US. Most US steel distributors have been reporting sharp reductions in inventories," the trader said.
 
According to market sources, Indian exporters have been keeping export offers unchanged in anticipation of transactions materializing in the New Year for late February and early March shipments.
 
The sources said that ex-China HDG prices were continuing to firm up on reported tight supplies in the domestic markets, while Indian exporters were riding the bullish trend.
 
"Most exporters will increase January offer prices by $15-20/mt and have been waiting for ex-China HDG FOB prices to move into the range of $725-750/mt," a Kolkata-based trader said.
 
However, he added that the US market on which Indian HDG is wholly dependent is still showing hesitancy, while US steel import applications will set the short-term trend for Indian HDG exports.