Indian HDG export offers decline for fourth straight week, no response in key markets

Thursday, 22 August 2019 11:17:54 (GMT+3)   |   Kolkata

Indian hot dip galvanized (HDG) coil exporters have cut their offers for the fourth consecutive week, reducing them by $15/mt week on week to $555/mt FOB but with very limited trades reported in the market purportedly because of business activity having yet to pick up after the holidays in the Gulf and the tussle among suppliers of ex-India and ex-China materials for buyers, traders said on Thursday, August 22.

“The further fall of the rupee to a new six-month low, inching towards the INR 72 to the dollar mark, has enabled local HDG exporters to further aggressively price offers. But there are just no buyers in key markets,” a Mumbai-based trader said.

“Business activity is still very low even after the end of the religious holidays in the Gulf Co-operation Council (GCC) region and prices trending southwards have attracted no significant demand recovery. Meanwhile, in Southeast Asian markets, Indian exporters are in a tussle for buyers who are tending to prefer ex-China material which is being offered aggressively after the weakening of the Chinese currency,” the trader added.

Market sources said that buyers in Southeast Asia have been seeking further discounts in the range of $10-15/mt even after the recent price drop but exporters have been reluctant to accede to such requests, leading to almost negligible contracts being concluded during the past week.

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