Indian export offers for hot dip galvanized (HDG) offers have gained $5-10/mt during the past week to around $870/mt CFR US as local exporters have pushed up their prices to compensate for the appreciation of the rupee against the dollar, traders said on Friday, April 4.
According to two Mumbai-based traders, local exporters have had no option but to adjust offers upwards to protect margins in rupee terms considering the sharp upward rise of the Indian currency against the dollar.
The marginally higher offers have not had any negative impact on transaction volumes even though the expected rise in transactions volumes boosted by healthy demand in the US and Gulf markets did not materialize, the traders said.
The Indian currency which had depreciated 11 percent against the dollar in 2013, has gained three percent against the dollar since January touching an eight-month high of INR 59.57 against the dollar on Wednesday, April 2.
Market sources said that local traders have been able to conclude transactions at around $790/mt CFR Gulf, up $10/mt over the previous week. Last month, Indian traders had cut offers by about $20/mt in order to push greater volumes to Gulf Co-operation Council markets to leverage rising demand in the region, the sources added.