Indian HDG exporters hike offers risking earlier improvements in bookings

Thursday, 11 July 2019 13:50:51 (GMT+3)   |   Kolkata

Indian hot dip galvanized (HDG) coil exporters have marginally hiked their offers by $10/mt week on week to $620/mt FOB, defying markets conditions like falling prices in key markets such as the Gulf Co-operation Council (GCC) region and potentially nipping in the bud the slight upturn in buying interest seen earlier, traders said on Thursday, July 11.

“The increase in offers is extremely curious. It will certainly put at risk the slight improvement in bookings seen earlier in the month as prices in key markets like the Gulf, Indonesia and Vietnam are seeking lower levels due to sluggish demand,” a Mumbai-based trader said.

“I would presume that the increase in offers was made for two reasons. Firstly, Chinese steel export prices have been increased marginally and Indian exporters are trying to fall in line. Secondly, exporters have been attempting to compensate for lower margins due to the slow appreciation of the Indian rupee. However, such reasons will be counter-productive when demand for ex-India HDG is still very tentative,” the trader added.

At least two other traders have confirmed that the offers submitted by them have not evoked any response from their prime buyers in the Gulf, indicating that, with demand remaining sluggish, they would rather postpone bookings until the next round of adjustments in offer levels.

$1 = INR 68.42

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