Indian hot dip galvanized (HDG) export offers have firmed up by $10-15/mt over the past week to $860-865/mt CFR US, on higher enquiries from American markets compensating continued weak demand in the European Union (EU), Indian traders said on Friday, November 9.
"Reports coming in suggest a sharp rise in imports of HDG in the US during October and this was reflected in Indian exporters' ability to negotiate higher prices," said a Mumbai-based trader.
"Few offers at $850/mt levels were rejected by Indian traders. Exporters were disinclined to confirm transactions at lower levels since the appreciation of the rupee against the dollar would bring down realizations," he said.
"Chinese HDG export offers have risen by $15-20/mt on FOB basis over the past week and Indian exporters have been following the trend," the trader added.
Market sources said that inquires from the EU and Gulf region are limited and that Indian exporters have rejected offers of $845-850/mt.
However, a western Indian trader cautioned against optimism over the American markets since a few countries in the region have started lobbying for higher import duty on HDG of Chinese and Indian origin, which, if implemented, would sharply squeeze volume exports to the region.