In a quick reversal of a previous reduction, Indian hot dip galvanized (HDG) coil exporters have hiked their offers by $10/mt during the past week to about $725/mt FOB on the back of the firming up of ex-China offers and the modest revival in interest among US buyers, traders said on Thursday, July 27.
“Rolling back a previous lowering of export offers within just two weeks is an unusual development. However, the cuts in offers were not sustainable in view of the appreciation of the Indian rupee against the US dollar,” a Mumbai-based trader said.
“The rising ex-China HDG offers have also provided Indian exporters with a window to reverse the cuts in their offers,” the trader added.
Market sources said that, despite the higher offers, a mild revival in buying interest is reported among US buyers even though actual transaction volumes are small but even this was in sharp contrast to the export activity for Indian HDG which had come to a standstill in the previous month.
However, the sources are quick to point out that doubts persist as to whether US buyers will continue to be active in the Indian market since prices of US flat steel products including HDG are seen to be slipping.
The sources said that US flat product prices may move in either direction given the uncertainties over the Section 232 investigations into US steel imports as the final verdict may go either way, and this situation is expected to limit US buyers’ activity in India.