Indian export offers for hot dip
galvanized (HDG) coils have remained unchanged during the past week at around $880/mt CFR US in an inactive market, traders said on Friday, May 30.
According to a Mumbai-based trader, most exporters have remained cautious about concluding bookings since the Indian rupee has been moving in both directions.
Most US buyers have been seeking offer around $15-20 lower but local Indian traders and exporters have been unsure of their pricing given the volatility of the Indian currency, resulting in only minor transactions being concluded during the week, he added.
Market sources said that HDG exports would continue to be in doldrums till stability evolved in the current market.
The rupee is currently in uncharted territory with a strong bias toward appreciation even though underlying fundamentals like high inflation and the high trade deficit did not warrant such gains against the dollar, the sources said.
During the past seven trading days, the rupee gained against the dollar during the early part of the week, while losing ground in the last three days to close at INR 59.03 against the dollar on Thursday, May 29.
A downward adjustment to push volumes overseas would become viable for exports only if the rupee move above INR 60 to a dollar, the sources added.