Indian exporters of hot dip galvanized (HDG) coils have marginally lowered their offers by around $10/mt during the past week to $730/mt FOB, due to the depreciation of the Indian rupee against the dollar, while they have been able to improve their shipment volumes during the past week amid the tightening of stocks held by US steel distributors, traders said on Thursday, September 28.
Sources said that rupee weakening to levels higher than INR 65 to the dollar during the past week offered a window for exporters to lower their offers without impacting their margins.
At the same time, exporters were able to conclude transactions for larger volumes for mid-October deliveries amid reports of reduced stocks at US steel distributors, the sources said.
However, some traders expressed doubts whether the improvement in transaction volumes will be sustained as there are uncertainties over the sustainability of US local HDG prices and any fall in the latter would nip in the bud the revival in the Indian market.