Indian hot dip
galvanized (HDG) exporters have cut their offers during the past week by $10-15/mt to the range of $860-865/mt CFR US in anticipation of higher volumes at the start of the New Year, traders said on Thursday, December 18.
According to a Mumbai-based trader, though the response to lower offers has remained modest during the past week, Indian exporters are expecting a rebound in buying interest once year-end considerations are no longer a factor, as US demand projections for the New Year are buoyant.
"Current stocks at US steel distributors are on the higher side as per reports received in
India. But US import shipments are forecast to rebound in the New Year despite lower imports reported during November," the trader said.
"Indian exporters are able to adjust their export offers ahead of the demand curve since the weakening of the
India rupee has ensured the protection of margins in export transactions," he added.
Market sources have said that, though the Indian currency showed some signs of a recovery on Thursday, December 18, strengthening to INR 63.21 to a dollar, the medium-term expectations have remained bearish.
The sources pointed out that earlier this week the Indian currency had breached the INR 63 to a dollar mark, moving to INR 63.92 a dollar, and any level weaker than INR 62 to a dollar will enable exporters to be more aggressive in adjusting HDG pricing to increase overseas shipments.