Indian hot dip galvanized (HDG) export offers have risen by a slight margin of $15/mt to the range of $635-650/mt FOB but have faced strong resistance with US buyers retreating and negligible transactions being concluded during the past week, traders said on Thursday, August 25.
“Local exporters had no option but to increase offer levels in the face of rising domestic input costs and the strength of the Indian currency against the US dollar,” a Mumbai-based trader said.
“But the offer adjustments have dealt a blow to export activity. With reports indicating a fall in flat product prices in the US and most distributors in the US reporting a sharp rise in inventories, there has been virtually no response to the higher offers,” the trader said.
However, at least two traders said that, while the adjustments were ill-timed, the lack of market activity means that there is a possibility that exporters may backtrack and roll back the increases in offer levels. They pointed out that, with the Indian rupee gaining strength, exporters would have to make a call on lower margins versus the ability to push volumes overseas.