Indian exporters of hot dip galvanized (HDG) coil have hiked their offers by a significant margin of $30/mt during the past week to $750/mt FOB to offset rising input costs and currency appreciation but at the cost of transaction volumes in the market, traders said on Thursday, January 4.
“Indian HDG exporters are caught in a no-win situation. Rising input costs have forced them to increase offers, at a time when US buyers are on the retreat, when the appreciating Indian rupee is eroding export margins, and amid almost negligible transaction volumes,” a Mumbai-based trader said.
“Reports received in India indicate a sharp fall in US flat steel product imports during December 2017 and this can explain the fall in the number of buyers seeking offers from India,” the trader added.
Sources said that ex-China HDG offers are also on the rise but Indian exporters are being pushed out of the market since the India currency which has appreciated sharply to INR 63.40 to the US dollar makes Indian exporters more uncompetitive vis-à-vis Chinese HDG shipments.
Sources said that demand in Gulf Cooperation Council (GCC) markets has also remained at low levels and Indian HDG offers at around $800/mt CFR Gulf have not elicited any response during the week.