Indian export offers for hot dip galvanized (HDG) coils have remained at around $830-840/mt CFR US during the past week, though transaction volumes have been down as buyers are uncertain about US domestic flat steel prices, traders said on Thursday, July 2.
According to a Mumbai-based trader, US domestic HDG base prices increased in early June but distributors were unsure of whether the higher levels would be sustained in the face of resistance.
The US buyers indicated that they would prefer to wait for local prices to settle before making any fresh import deals, resulting in just a few low volume transactions concluded in the Indian export market, the trader aid.
Market sources said that Indian exporters are hamstrung in being aggressive in pricing in view of the uncertainty of the movement of the Indian rupee against the US dollar, in wake of the crisis unfolding in Greece.
The Indian rupee has defied expectations and actually gained strength over the last two days to INR 63.61 to the dollar despite nervousness in the currency market over a Greek default.
Indian HDG offers to Gulf Co-operation Council (GCC) markets have also remained in the range of $600-620/mt CFR Gulf. Sources said that offers have moved sideways despite the lack of transactions owing to the trading slowdown for Ramadan. Exporters are expecting that transaction volumes will revive towards the end of the current month, the sources added.