Amid the depreciating local currency, Indian export offers for hot dip galvanized (HDG) coils have been adjusted during the past week, declining by $10/mt to around $800-805/mt CFR US, but have failed to entice buyers who have been cautious about increasing their inventories, traders said on Thursday, November 12.
"Indian HDG exporters have seized the opportunity provided by the Indian rupee depreciating to around $66.35 to a dollar to adjust their offers, but there has just not been enough buyers," a Mumbai-based trader said.
"It seems that year-end considerations have set in early among US buyers. It is not so much the pricing but fears of being caught with high inventories like last year that have kept US buyers away from import transactions," the trader said.
"A few buyers have said that they are unsure of demand trends in the North American market in the New Year and so they are extra cautious," he added.
Sources said that sentiment among Indian HDG exporters has also been impacted by a sustained lack of interest in Gulf Co-operation Council (GCC) markets where demand has been falling steadily and where no significant transaction has been reported for several weeks.
Indian offers have remained at $580/mt CFR Gulf, but there are no takers as buyers prefer to maintain liquidity rather than lock it up in inventories amid sluggish demand, the sources said.