Indian export offers for hot dip galvanized (HDG) coils have remained stable during the past week at around $795/mt CFR US, while exporters have been successful in increasing shipment volumes even after withdrawing discounts, traders said on Thursday, February 11.
“Discounts ranging around $15-20/mt have no longer been prevalent in the market during the week. However, despite discount withdrawals, local exporters have been able to increase transaction volumes riding on the sharp rise in local US HDG prices,” a Mumbai-based trader said.
“Several US buyers have told us that US HDG prices surged up during the week in sharp contrast to other flat steel products. We have also learnt that HDG supplies on spot basis have been tight in the US market, leading to greater interest in imports from India,” he added.
Some market sources have said that Indian exporters are well placed to revive discounting if export volumes dip, since the Indian rupee has stabilized well below the INR 67 to the dollar mark and will offer a sustainable window for aggressive pricing.