Indian export offers for hot dip galvanized (HDG) coils have remained unchanged during the past week at $640-650/mt FOB amid support from a sharp upturn in buying interest from US importers, while Indian exporters have been offering discounts for larger tonnages, traders said on Thursday, June 23.
"Indian exporters have been pleasantly surprised by the revival in buying interest triggered by reports of a rise in flat product prices in the US," a Mumbai-based trader said.
"There are also reports in the market that some steel mills are even offering discounts of around $20/mt for large tonnages," the trader added.
Market sources said that several US steel distributors have stated that flat steel product prices have peaked in the US market but the moot point is whether they will trend sideways or fall off the peak as they did last year.
However, a section of market sources are cautious regarding Indian exporters' ability to continue offering discounts to push HDG export volumes since the currency market risks being volatile in the wake of the Brexit results in the UK.
The Indian rupee which had gained strength to levels of INR 66.98 to the US dollar a week ago has softened to INR 67.49 to the dollar during the past week.