Indian hot dip galvanized coil (HDG) exporters have lowered their offers by $10/mt during the past week to about $870/mt CFR US, but this attempt has failed to push volumes as the reduction fell short of buyers' expectations, traders said on Wednesday, June 18.
According to a Mumbai-based trader, the weakening of the rupee, falling below the INR 60 to a dollar mark, enabled local exporters to adjust prices to push volumes overseas.
But the $10/mt reduction has failed to attract buyers since Chinese exporters have been able to price their HDG exports more aggressively, he added.
Market sources said that most Indian HDG exporters have been cautious about adjusting prices since the rupee has been moving in either direction over the past two weeks and so they would prefer to wait for the local currency to stabilize below INR 60 to a dollar before increasing the reductions in their offers.
At the same time, offers of around $770/mt CFR have been maintained for markets in the Gulf Cooperation Council (GCC) but transaction volumes have been reported at modest levels owing to the approach of Ramadan, and importers are unwilling to increase stocks, the sources said.