Indian exporters’ hot dip galvanized (HDG) coil offers have remained stable at $645/mt FOB, during the past week, as both Indian traders and buyers, particularly in the Gulf region, have preferred to wait for firm trends to emerge for ex-China offers, traders said on Thursday, February 14.
“With demand remaining tepid in most key markets like the Gulf Co-operation Council (GCC) and Southeast Asia, pricing will play a key role in determining Indian exporters’ shipment volumes,” a Mumbai-based trader said.
“ But with most buyers in these markets waiting for a firm trend to emerge for ex-China offers after the Chinese holiday and preferring to wait before concluding transactions, Indian exporters have also been waiting before making any adjustments in either direction,” the trader added.
However, according to market sources, Indian exporters will be hamstrung in lowering offers in a significant way to be able to push volumes overseas, considering the recent appreciation of the local currency against the US dollar which would further erode margins if offers were to be adjusted in a downward direction.
Over the past week, the Indian rupee has appreciated to the current level of INR 70.10 to the dollar, leaving little leeway for exporters to lower offers and push volumes, the sources added.