Indian export offers for hot dip galvanized (HDG) coils have remained at around $880/mt CFR US during the past week, but exporters have failed to push volumes into the US given the stiff competition from Chinese exports, traders said on Thursday, September 25.
According to two Mumbai-based traders, with domestic prices softening in China, ex-China HDG is being offered at hefty discounts in the range of $20-30/mt to US buyers which Indian traders are unable to match resulting in few transactions for Indian material being concluded during the week.
The traders said that Indian offers will have to be adjusted if volume shipments to the US are to be increased and Indian exporters are expected to do so starting next month.
The Indian rupee, which has been weakening steadily and is at slightly below the INR 62 to a dollar mark, will determine the size of export price adjustments and any exchange rate higher than INR 62 could prompt a $10-15/mt lowering of offers, the traders said.
Market sources said that no reports of any significant transaction volumes have been heard from the Gulf Co-operation Council (GCC) countries and business activity there is not expected to revive until after the coming religious holiday.