Indian hot dip galvanized (HDG) coil exporters have maintained their offers at around $850/mt CFR US but transaction volumes have fallen as buyers have sought larger discounts, traders said on Thursday, March 26.
According to a Mumbai-based trader, after lowering their offers earlier in the current month, local exporters have been unwilling to adjust their prices further, while buyers have pulled back from the market, resulting in few transactions during the week.
The trader said that most buyers have insisted on exporters passing on the benefits of the weakened Indian currency through large discounts, but clearly exporters have been unwilling to do so.
The Indian rupee has been stable at levels weaker than INR 62 to the US dollar for most of the current month, prompting buyers to seek discounts, he added.
However, some market sources have said that, more than Indian HDG offer levels, importers in the US markets are unwilling to conclude transactions for large volumes as local US flat steel product prices have been softening steadily.
US buyers are unlikely to return to the Indian HDG market to purchase large volumes until they are sure of the short-term bottom of US flat steel product prices, the sources added.