Indian hot dip galvanized (HDG) coil exporters have continued to prune offers, lowering them by $10/mt to $545/mt FOB to keep pace with the steadily falling ex-China offers but negligible trades have been reported in the market, traders said on Thursday, August 29.
“The steadily falling offers over the past several weeks are keeping away buyers amid expectations that prices have yet to hit a bottom. Most buyers in key overseas markets are postponing bookings anticipating that ex-China offers will continue to seek a new bottom in the wake of the depreciation of the RMB and renewed China-US trade skirmishes,” a Mumbai-based trader said.
“Indian exporters are clearly caught up in the middle with little pricing power considering their higher cost of production and despite the Indian rupee depreciating but not at the pace of the Chinese currency to protect margins even after adjusting offer levels. Indian exporters can do little to push volumes overseas if buyers perceive a further fall in prices,” he added.
According to two other traders, buyers in a key market like the Gulf Co-operation Council (GCC) region have been receiving offers but not responding primarily owing to depressed local demand and the anticipation of a further fall in prices, and hence have all been in ‘wait and watch’ mode.