Over the past week, Indian exporters’ hot dip galvanized (HDG) coil offers have marginally decreased by around $10/mt to $750/mt FOB, rising on the depreciation of the Indian currency but with no improvements in buying sentiments against backdrop of the uncertain international trade environment and with Gulf buyers yet to return to full activity, traders said on Thursday, June 21.
“Indian exporters are seen to be lowering their offers and passing on the benefits of the depreciation of the Indian currency. But this did not have any impact as buyers have continued to stay away from concluding transactions,” a Mumbai-based trader said.
“There exists a very uncertain international trade environment. US aggression on tariffs, the rift with its largest trading partners, the imposition of fresh tariffs on China are all leading to great nervousness. Buyers are unwilling to conclude large transactions in such an environment,” the trader added.
According to two other traders, large Indian steel mills are also losing interest in trying to push volumes to even maintain a market presence as the exporting mills are enjoying strong price margins in the domestic market and only commercial exporters are seen to be submitting offers but are failing to attract buyers, leading to virtually negligible activity in the market.
The anticipated return of buyers from the Gulf, as business activity has picked up in the region after the end of Ramadan has not yet materialized and, though Gulf buyers are seen to be receiving offers, there has been little response as regards conclusion of transactions during the past week, the two traders stated.