Indian exporters’ hot dip galvanized (HDG) coil offers have remained unchanged at $645/mt FOB during the past week but no significant transactions have been concluded owing to year-end considerations and reported high inventories in most destination markets, traders said on Thursday, January 3.
“High stocks in key markets like the Gulf Co-operation Council (GCC) region have kept both prices and buying interest at a low ebb and Indian commercial exporters have been unwilling to be aggressive in pushing volumes,” a Mumbai-based trader said.
“Also, with the India rupee strengthening to INR 69 to the US dollar during the past week, this has limited exporters’ ability to price their offers aggressively,” the trader added.
According to two other traders, buyers in Southeast Asian markets have reportedly been seeking hefty discounts in the range of $20-25/mt on the FOB price as ex-China offers though flat during the past week are expected to decrease once activity resumes in the New Year. However, Indian commercial exporters have not been willing to accede to requests for discounts, leading to a virtual absence of transaction activity, the traders said.