Indian hot dip galvanized (HDG) coil export prices have this week increased by $10-15/mt to $850-855/mt CFR to the US ports, with exporters compensating for lower realizations from a stronger rupee, local traders said on Friday, October 12.
"Higher ex-China export offers for December shipments of HDG have supported Indian exporters in marginal upward revisions of their prices," a Mumbai-based trader said.
"With interest in Indian HDG from the Americas remaining firm, the marginal increase in HDG offers has been absorbed by buyers, and bookings for December shipment have been steady," the trader said.
However, according to traders in the eastern Indian market, the higher prices did not find any inquiries from buyers in the EU and Middle East since Indian exporters are unwilling to offer discounts.
"There has been a lot of uncertainty over the sustainability of the current HDG export volumes. Buying interest is limited only to the US. Without bookings from the EU and Middle East and if the Indian currency continues gaining against the dollar, HGD exports will become unviable," a Kolkata-based trader said.
"Since buyers' interest is still limited, ex-India HDG export offers have maximum upward room of another $5-10/mt beyond which importers will not book shipments," the trader added.