Indian export offers for hot dip
galvanized (HDG) have showed divergent trends across markets during the past week, remaining stable for the US but moving down in Gulf markets, traders said on Thursday, May 8.
According to a Mumbai-based trader, offers to the US have been kept at around $880/mt CFR US but export prices to the Gulf Cooperation Council (GCC) region have moved down by $30-40/mt to around $740/mt CFR amid higher supplies from south Asian steel mills.
Demand in the GCC has continued to be strong but oversupply has negated any support for Indian offers as buyers have been able to negotiate lower prices, the trader added.
Market sources said that HDG exporters have also been cautious about offering volumes, with the sharp fluctuations of the Indian currency against the US dollar making medium-term pricing strategy difficult. On Thursday, the Indian rupee hit a one month-high at around INR 60.01 against the dollar, having weakened to INR 60.14 against the dollar on the previous day.
The sources said that, with the Indian currency appreciating by 2.92 percent against the US dollar since beginning of the year, Indian HDG exporters are cautious about pushing volumes overseas and prefer just to conclude smaller deals to maintain their market presence.