Indian hot dip galvanized (HDG) coil export prices have remained unchanged during the past week at $750/mt FOB due to inactive market conditions with exporters unwilling to push volumes, while US buyers are reported to be nervous ahead of investigations on steel imports into the US, traders said on Thursday, May 25.
"The situation is one of all-pervading gloom for local HDG exporters. The strong Indian rupee has reduced export margins in US dollar terms and allowed only minimal room for price adjustments," a Mumbai-based trader said.
"At the same time, several US buyers have reported considerable nervousness ahead of the imminent public hearing to be held by the US Department of Commerce (US DOC) on steel imports. The signals from the US market are very negative," the trader added.
Market sources said that, ahead of the US DOC hearing on steel imports this week, there have been statements from the local US steel industry to the effect that steel imports are a threat to national security, triggering much nervousness among both Indian exporters and US steel distributors.
At the same time, at least two other traders have said that Indian HDG exporters have started to consider some minor adjustments to offers - a slight $10-15/mt reduction - subject to the Indian rupee breaching the INR 65 mark against the dollar.
On Wednesday, May 24, the rupee was trading at around INR 64.79 to the dollar.