Indian exporters of hot dip galvanized (HDG) coils have remained stable at $740/mt FOB during the past week, despite the lack of buying interest particularly among US buyers, traders said on Thursday, September 14.
“Concerns over the impact of hurricanes striking US on shipments, narrowing spreads between the prices of landed import HDG and domestic HDG in the US and sufficient inventories of US-based distributors have kept most US buyers away from Indian HDG bookings” a Mumbai based trader said.
“The Indian currency too is not conducive for exports. Having reduced offers earlier in the month, exporters do not have much pricing leverage with the Indian rupee once again showing a bias toward appreciating against the dollar” he added.
Traders said that local HDG exporters are emboldened to reduce offers based on signals of the Indian rupee weakening breaching the INR 64 to a dollar, but the local currency has once again showed signs of appreciating from this level, negating any impact of lower HDG offers for exporters.
$1 = INR 64.08