Indian exporters have kept their hot dip
galvanized (HDG) offers unchanged at $725/mt FOB during the past week but have also refrained from aggressively pushing for transactions in view of uncertainties regarding the movement of the Indian currency, traders said on Thursday, April 6.
"A combination of cautiousness among US buyers and the appreciating Indian rupee have dampened the mood among Indian HDG exporters," a Mumbai-based trader said.
"US buyers are taking a pause to see whether recent rises in the US flat product prices will be sustained. On the other hand, Indian exporters are unwilling to conclude transactions as margins are steadily being eroded by the appreciation of the rupee against the US dollar," the trader added.
Market sources said that the Indian rupee saw some of the biggest gains against the US dollar in the past four years having breached the INR 65 to the dollar mark during the past week.
Having appreciated higher than INR 64.95 to the dollar, large exporters of HDG are reluctant to conclude transactions and the sources said that most exporters are taking a pause to consider revising offer levels to compensate for the rising Indian currency.
At least two traders said that an increase of $10-15/mt in offers is being considered but, at the same time, exporters are wary of buyers' resistance in the US market and so any proposed increase will take time.