Indian hot dip galvanized (HDG) export offers have remained at around $690/mt FOB during the past week amid limited market activity as exporters were seen to be going slow in concluding export transactions before finalizing a new pricing strategy, traders said on Thursday, March 2.
"With US HDG prices firming up over the past week and consolidating at higher levels, Indian exporters are yet to decide on new export offers and have been postponing new transactions," a Mumbai-based trader said.
"There is definitely going to be a sharp upward revision in HDG export offers as not only US prices have been firming up but margins from current export offers are almost the same as margins from domestic HDG sales, and so exporters want to make an adjustment. It is just a matter of time before export offers are hiked," the trader added.
According to at least two other traders, the current lull in activity will give way to a significant increase in offers which could range as high as $30-40/mt.
Exporters would be forced to make a significant increase in offers considering the rise in input costs and the lack of any difference in margins between export and domestic sales of HDG.
The expected increase in offers will also have to factor in the fall in margins in dollar terms with the rupee staying firm against the US currency and consolidating at INR 66.71 to the dollar, the two traders concurred.