Indian export offers for hot dip galvanized (HDG) coils have remained unchanged during the past week at around $855/mt CFR US amid low transaction volumes as US buyers have preferred to wait for domestic flat product prices to bottom out before concluding fresh import deals.
According to a Mumbai-based trader, there is considerable confusion about whether US flat product prices have run their downward course and, hence, importers are unwilling to conclude transactions from India. The trader said that US buyers prefer ex-China HDG shipments even for low volumes, with ex-China offers about $20-25/mt cheaper than Indian offers.
Market sources said that Indian HDG exporters are unable to keep pace with the aggressive pricing strategy of Chinese exporters and the latter are able to continue pushing volumes even in the declining price conditions in the US market.
The market sources said that Indian traders adjusted their prices early in the month, but with the rupee strengthening to INR 61.36 to a dollar compared to INR 62.32 to a dollar early in the month, exporters are hamstrung in efforts to continue to lower offers to match the falling steel prices in the US.
Indian HDG offers need to be adjusted down by another $10-15/mt to attract a response in volumes from US buyers, but it is unlikely until the Indian currency will depreciate sufficiently, the sources added.