Indian exporters of hot dipped galvanized (HDG) coils have hiked their export offers by $4-5/mt during the past week to the range of $840-842/mt CFR US to offset higher price of domestic hot rolled coil (HRC) but buyers have retreated from concluding deals, traders said on Thursday, August 8.
According to two Mumbai-based trader/exporters, several large volume enquiries from US buyers have failed to be converted as buyers have rejected higher offers and instead have sought lower offers in view of weak Indian currency.
"Small volume transactions were reported in the market. But there was hectic bargaining between local exporters and US buyers," a trader said.
"US buyers were demanding that benefits of higher realizations to local exporters accruing from depreciating rupee should be passed through lower offers. But exporters were reluctant to pass on benefits of weak currency in order to protect margins from higher price of HRC effected by most domestic steel mills," the trader added.
Market sources said that HDG export market in the Gulf Co-operation Council (GCC) region has remained completely inactive owing to holidays in these markets further depressing volumes and sentiments among local exporters.
The sources said that whether Indian HDG offers would be able sustain the $4-5/mt of increase would largely depend on buying trends when importers return after holidays in the GCC and stock positions with the US steel distributors.