Indian exporters of hot dip galvanized (HDG) coils have increased their prices by around $15/mt during the past week to $740/mt FOB, but transaction activity has remained muted without many takers at these higher levels, traders said on Thursday, August 17.
“Hiking offers in the current market scenario is a risky step as there are not many buyers in the Indian market ,” a Mumbai-based trader said.
“Exporters are hiking offers largely in response to the rise in offer prices of ex-China HDG and to compensate for lower earnings owing to the strength of the Indian rupee against the dollar. Exporters are risking volumes due to their focus on margins,” the trader added.
At least two other traders have stated that, while the export shipments of low volumes concluded during the past week were restricted to large Indian steel mills, Indian exporters have stayed away as they have not been willing to conclude transactions at lower margins stemming from the strong Indian currency.
The two traders said that most US buyers have stayed away from the Indian market largely owing to the prolonged uncertainty surrounding the US steel import investigations under Section 232 and also due to great uncertainty over US-based steel mills’ pricing.
According to these two traders, reports received in India indicate that US steel mills are still not certain about holding on to their recent hike in HDG base prices and this has prompted importing US steel distributors to stay away from the Indian market.