Indian exporters of hot dip galvanized (HDG) coils have increased their offers by around $10/mt during the past week to $750/mt FOB, while there has been a modest upturn in export activity, traders said on Thursday, August 24.
“This has been the second hike in HDG offers in consecutive weeks. Clearly, local exporters are taking their cue from the sharp rise in ex-China HDG offers,” a Mumbai-based trader said.
“The revival in transaction volumes and the higher volume offerings by exporters are also the result of the Indian rupee showing signs of stability above the INR 64 to the US dollar mark, up from levels of INR 63.70-63.50 to the dollar earlier in the week,” the trader added.
Market sources said that a greater number of US buyers are showing interest in and making enquiries for Indian HDG, following the hikes coming into effect in US flat steel product prices and also due to the perception that final result of the Section 232 investigation in the US into steel imports will not be announced in the near term and given the decline seen in US steel distributors’ stocks.