Indian export offers for hot dip galvanized (HDG) coils have showed no changes during the past week, remaining at $880/mt CFR US with market activity at low levels, traders said on Friday, May 16.
According to a Mumbai-based trader, buyers have been seeking lower offers, while exporters have declined to adjust their offers in view of the sharply appreciating Indian rupee, resulting in low transaction volumes.
The Indian rupee has been steadily appreciating against the dollar breaching INR 60 to a dollar and standing at INR 59.29 to a dollar on Thursday, May 15.
Most exporters have been cautious about shipping higher HDG volumes overseas since the strong Indian currency will result in lower export margins.
However, market sources said that demand from the Gulf region has continued during the week, with Indian HDG offers still at $740/mt CFR Gulf Cooperation Council (GCC) region.
Nevertheless, transaction volumes to the Gulf have also remained subdued due to the strong competition faced by Indian exporters from Southeast Asian steel mills which have been adopting an aggressive approach in the GCC markets, the sources said.