Indian exporters of hot dip galvanized (HDG) coils have maintained their offers unchanged during the past week in the range of $560-565/mt FOB, but have pulled back discounts seen in earlier weeks in response to the slight appreciation in the local currency. Buyers in key markets like the Gulf have limited contracts to low volumes in the lower range of offers, SteelOrbis learned on Thursday, January 16.
According to traders, with the local currency appreciating against the US dollar, exporters have withdrawn discounted deals to protect their export realizations.
Market sources said that a western India-based steel mill has concluded a deal for shipment of a modest volume of 6,000 mt for March delivery at $559/mt FOB to Gulf, which is slightly higher than a similar deal concluded in the previous week.
An eastern India-based steel mill has concluded a deal for March delivery of an estimated 8,000 mt with buyers in Malaysia at $561/mt FOB.
“Most large exporting steel mills are not aggressive in pushing volumes overseas for a combination of reasons including the appreciating local currency and low availability of thinner gauge hot rolled coil (HRC) for conversion to HDG,” an official at JSW Limited said.
“Large steel mills are getting a premium on exports of thinner gauge HRC and pushing higher volumes into exports. Even the lower availability of HDG is getting good realizations in the local market, resulting in low HDG export trades,” he added.