Indian export offers for hot dip galvanized (HDG) coils have continued to move sideways during the past week, remaining stagnant in the range of $625-635/mt FOB amid inactive market conditions due to the absence of demand in view of falling US flat steel product prices and the Indian currency gaining strength against the US dollar, traders said on Thursday, October 13.
"US buyers have continued to remain out of the market. Several of them told us that US steel mills have been pushing down their flat product prices to keep volumes moving, while US distributors are carrying large stocks and so their interest in Indian HDG has been negligible," a Mumbai-based trader said.
"Indian steel exports are showing divergent trends. While outward shipments of most other flat products like hot rolled coil (HRC) remain strong to South Asia and Europe, HDG is lagging behind. Accordingly, most of the large Indian mills are not too aggressive in pushing for HDG transactions by revising their pricing strategy," the trader added.
Market sources said that the Indian rupee has been showing a strong trend against the US dollar despite some weakening seen in early trades on Thursday.
The sources said that despite weakening to INR 66.79 to the US dollar on Thursday, the outlook for the Indian currency is for a strengthening to INR 66.50 to the dollar and this would preclude any window to adjust HDG export offers in the short term.