Indian export offers for hot dip galvanized (HDG) coils have remained stable during the past week at $820-825/mt CFR US, but transaction volumes have been declining as US buyers have been facing falling demand, traders said on Thursday, October 8.
According to a Mumbai-based trader, reports received from buyers have indicated that rising US imports and falling demand have put pressure on the margins of steel distributors across North America.
Under these circumstances, US buyers have been seeking downward adjustments of $15-20/mt in offer levels, but Indian exporters have declined to oblige, the trader said.
The trader went on to state that Indian HDG exporters have been unable to compete with Chinese exporters’ aggressive pricing strategy in view of the appreciating Indian currency.
The Indian rupee has strengthened to INR 64.96 against the US dollar, recording its fourth largest gain in the current year.
Market sources said that the appreciating local currency has hamstrung HDG exporters in adopting aggressive pricing to push volumes.
Demand in Gulf Co-operation Council (GCC) markets has also remained weak and even sub-$600/mt offers in the range of $580-590/mt CFR Gulf have failed to attract any buying interest, sources added.