Indian hot dip galvanized (HDG) exporters have increased their offers by $15/mt during the past week to $725/mt FOB to offset the appreciation of the local currency, but transaction volumes have fallen sharply, traders said on Thursday, March 23.
"Indian exporters were compelled to increase their HDG export offers to offset the steady appreciation of the Indian rupee against the US dollar. But reports in the market indicate that no significant transaction volumes have been concluded during the past week," a Mumbai-based trader said.
"However, I am not sure whether the slowdown in export transaction volumes is entirely owing to hikes in offers. Reports received from our buyers indicate that, despite firm US steel prices, overall import shipments into the US have also slowed down," the trader added.
The Indian rupee is currently trading at around INR 65.40 to the dollar, gaining around four percent since the start of the current calendar year.