Indian exporters of hot dip galvanized (HDG) coils have maintained their offers unchanged during the past week at around $790/mt CFR US even after adjustments early in the month failed to boost shipment volumes, traders said on Thursday, January 14.
"Marginal adjustments early in the month failed to have any impact in the past week. There is little interest among buyers despite US steel mills attempting to push up flat product prices," a Mumbai-based trader said.
"It seemed that buyers are reluctant to conclude transaction for large volumes for several reasons. US steel distributors are already carrying sufficient stocks and are not sure whether higher flat product prices will be sustained," the trader said.
"Also, reports received in India indicate that duties on steel imports into the US could increase, triggering caution among buyers," he added.
Sources among HDG exporters said that a more aggressive adjustment in offers is necessary for them to be able to push higher volumes and compete with Chinese steel mills.
However, exporters are waiting for the steadily depreciating rupee to breach the INR 67 to a dollar mark from the current level of INR 66.81 to a dollar, before revising their export pricing strategy.