Indian exporters’ hot dip galvanized (HDG) coil offers have remained stable at $675/mt FOB during the past week, even though the market has remained without any activity and almost no export transactions were concluded, traders said on Thursday, November 1.
“Given the continued poor demand in traditional export markets like the Gulf Co-operation Council (GCC) and Southeast Asia, Indian exporters had a choice of either lowering offers aggressively to be able to push volumes overseas or increasing their focus on local sales where prices are continuing to consolidate at higher levels. Clearly, commercial traders and large mills are choosing to focus on local sales,” a Mumbai-based trader said.
“The Indian rupee has remained stable for most of the past week, with exporters deprived of any additional margin incentives from the weak currency, further forcing them to stay away from export transactions,” the trader added.
Two other traders also attributed the festival holidays ahead for the lack of activity in the market, although they conceded that, with ex-China HDG offers softening, Indian exporters would have no option but to aggressively price their offers too if they are to push volumes overseas after business activity revives after the festivals.