Indian exporters of hot dip
galvanized (HDG) coil have increased their offers by about $20/mt during the past week to around $750/mt FOB but transaction activity has slackened due to resistance from buyers, traders said on Thursday, April 13.
"While the overall mood among Indian steel exporters has remained buoyant amid rising shipments, HDG exports seem to be the weak spot as export transaction activity for HDG has declined in the wake of the latest hikes in offer prices," a Mumbai-based trader said.
"HDG exporters have been left with no option but to adjust their offers to compensate for the steadily appreciating Indian rupee. At the same time, an increase in HDG offers had become imperative to maintain the gap with prices of HRC and CRC, domestic prices of which have been increased by local mills over the past week," the trader added.
Sources said that margins on HDG exports have suffered with the Indian rupee appreciating to INR 64.50 to the US dollar and currency dealers are forecasting that the level of INR 64 to the dollar could also be breached.
But the sources said that buyers particularly from the US have received offers but have not responded or concluded any significant transactions.
However, the sources said that it is too early to gauge whether the lack of interest from US buyers is owing to resistance to the hike in offers by Indian exporters or uncertainty over short-term steel price trends in the US market.