Indian export offers for hot dip galvanized (HDG) coils have stagnated at around $880/mt CFR US with no significant transactions being reported during the past week, while modest transactions have been concluded in the range of $740-770/mt in the Gulf markets, down by $20-30/mt from the previous week, traders said on Friday, June 6.
According to a Mumbai-based trader, even though US imports of flat products have been rising, prices have been softening and there have been no buyers for Indian HDG at current offer levels.
US buyers have been seeking discounts in the range of $30-40/mt, but Indian HDG exporters have been unable to meet such requests in view of the strength of the rupee against the dollar, with the rupee still below the INR 60 to a dollar mark at around INR 59, the trader said.
Indian HDG exporters have been missing the bus of rising US steel imports, lacking the competitiveness of pricing power to increase market share given the strength of their local currency, he added.
Sources said that demand for flat products in the Gulf Co-operation Council (GCC) markets has continued to remain strong and Indian exporters have been able to conclude modest transaction volumes but only after lowering offers by $20-30/mt.