Indian export offers for hot dip
galvanized (HDG) coils have remained stable at around $860/mt CFR US during the past week, while buying interest has been tepid, traders said on Friday, March 28.
According to a Mumbai-based trader, demand in the US market has continued to remain healthy, but buyers are seeking lower offers to conclude transactions.
However, in view of the appreciation of the rupee against the dollar last week, local traders are reluctant to convert offers to transactions at a discount, resulting in a drop in export volumes during the week, the trader said.
Market sources said that the cautious buying from the US market is compensated by continued higher volume exports to the Gulf markets.
Having already lowered offers earlier in the month by around $20/mt, Indian exporters have been able to conclude transactions at around $780/mt CFR Persian Gulf, the sources said. But the sources cautioned that Indian HDG export volumes are expected to decline in April considering the fact that the Indian currency has appreciated by five percent against the US dollar, while the Chinese RMB has depreciated by three percent during the past two months.
The appreciating rupee may prevent Indian HDG exporters from pushing volumes at a time when buyers in the US are seeking lower offers for large volume transaction, the sources added.