Indian hot dip galvanized (HDG) coil exporters have marginally increased their offers by $5-10/mt week on week to around $725/mt FOB to offset the rise in input costs, but buyers have continued to stay away and transaction volumes during the past week have remained negligible, traders said on Thursday, July 6.
“Manufacturer-exporters state that there was no option but to hike their HDG offers in view of the rise seen in input costs, particularly in iron ore and energy costs,” a Mumbai-based trader said.
“Also, with the Indian rupee stagnating at higher levels of INR 64.75 to the US dollar, exporters have been forced to make an adjustment to protect their profit margins. However, I don’t think there has been any change in outlook considering that there are no buyers in the Indian market,” the trader added.
At least two other traders said that Indian exporters went ahead with marginal increases in offers largely driven by the fact that ex-China HDG offers have moved up by about $10/mt on FOB basis as a result of the rise in Chinese domestic steel prices.
Sources state that reports received in India indicate that the US flat steel market is not showing any discernible trends and the lack of an announcement in the probe into US steel imports under Section 232 is keeping US steel distributors away from the overseas markets.