Indian export offers for hot dip
galvanized (HDG) coils have been pushed up marginally by $5-10/mt during the past week to around $880/mt CFR
US as exporters have tested the market to compensate for the appreciating rupee, traders said on Friday, April 25.
Two Mumbai-based exporters said that traders and steel mills have been testing the market through small increases in offers since the rupee has been gaining against the dollar, but strong resistance from buyers has resulted in few transactions being concluded during the week.
According to reports received in
India, few steel mills in the
US have been increasing flat product prices in their domestic market and Indian exporters have tried to take advantage to test higher HDG export offers but this has not appeared to be working, the traders added.
Market sources said that Indian HDG exports will continue to face uncertainties over the next two weeks as short-term flat product price trends emerge in the
US markets and may affect Indian exporters' ability to successfully push higher offers.
However, unless volumes pick up in the
US market, Indian traders may be forced to adjust prices in a downward direction and sacrifice margins, unless the current strength of the Indian currency against the dollar is short-lived, the sources added.