Indian exporters’ hot dip galvanized (HDG) coil offers have remained stable during the past week at $760/mt FOB, with a further dip in transaction activity as Gulf buyers retreated from the Indian market, traders said on Thursday, May 24.
“Generally, overseas buyers were expecting that Indian HDG exporters would pass on the benefits of the weakening Indian rupee. However, with Indian exporters deciding to maintain offers unchanged despite the depreciation of the rupee, buyers were seen to be retreating from the market,” a Mumbai-based trader said.
“Gulf buyers too are largely reluctant to conclude transactions in view of low business activity during the month of Ramadan. There are reports that offers ranging at around $820-830/mt CFR Gulf have been rejected by buyers who are seeking a larger discount,” the trader added.
According to two other traders, the decision of large exporting mills to keep offers stable despite the lack of buying interest is due to Chinese steel mills which are also seen to be keeping their current offer levels unchanged.
In the event of any downside correction in ex-China HDG prices, Indian steel mills would only then follow suit and lower their HDG export offers, leveraging the window offered by weak rupee which has been inching close to the INR 80 to the dollar mark, the traders added.