Indian exporters of hot dip galvanized (HDG) coil have cut their offers for the fourth consecutive week by $10/mt week on week to $605/mt FOB, but with limited success in concluding new bookings, traders said on Thursday, May 30.
Market sources said that only two large private sector steel mills have been able to conclude bookings of an estimated aggregate volume ranging around 9,000 mt with buyers in Southeast Asian markets, while commercial exporters have not reported any success in concluding export contracts.
“With business activity in key Gulf markets remaining at minimal levels for Ramadan, Indian commercial exporters have not received any response to offers submitted,” a Mumbai-based trader said.
“The four consecutive adjustments in offers have been exceptional. Especially with the local currency remaining strong against the dollar, exporters do not have much leeway in aggressive pricing. It is clear that, despite the prospects of lower margins from the strong local currency, exporters are adjusting offers to maintain a presence in key markets at a time when ex-China HDG shipments to these markets have also been low,” the trader added.