Indian hot dip galvanized (HDG) coil exporters have kept their offers stable at $725/mt FOB during the past week but, despite rising US flat product prices, buyers have continued to stay away from concluding transactions in the Indian market, traders said on Thursday, July 13.
“Uncertainties over the US steel import probe under Section 232 are being prolonged. US steel mills are taking advantage of fears in relation to 232 to push up their domestic flat product prices, but the same fears are keeping importers away from the Indian market,” a Mumbai-based trader said.
“I do not expect Indian HDG exports to revive until there is some decision taken on the Section 232 probe. The fact that Indian exporters increased their offers earlier this month is not helping to revive interest among buyers,” the trader added.
Sources said that Indian exporters have no option but to maintain their current high offer prices in view of the volatility of international coking coal prices as well as the increases in logistical costs of domestic producers, adding that the lackluster export situation is the logical fallout of this.
The Indian rupee has also rebounded from a low of INR 64.80 to the US dollar to levels of around INR 64.50, with currency traders forecasting further gains by the Indian currency, and this would further limit the ability of Indian traders to adopt an aggressive pricing policy to push volumes, the sources said.