Indian export offers for hot dip
galvanized (HDG) coils have remained stable in the range of $855-865/mt CFR US, but have failed to attract any buying interest amid falling flat steel product prices and aggressive pricing by Chinese exporters, traders said on Friday, January 30.
According to a Mumbai-based trader, Chinese HDG exporters were able to push large volumes into the US market after drastic cuts in offers which Indian exporters were unable to match in view of the rising strength of the Indian rupee against the US dollar.
The gains in the rupee against the dollar have prevented Indian HDG exporters from adjusting their offers, resulting in US buyers' lack of interest in concluding transactions from
India, he said. Market sources said that a fall in US flat steel product prices is expected to gather momentum in the next few months and Indian HDG exporters will face challenges in pushing HDG volumes into the US market.
Sources said that, in the Gulf Co-operation Council (GCC) markets, Indian HDG transactions are in the range of $680-690/mt CFR Gulf, but volumes are limited since several buyers are seeking lower offers at around $660/mt and transactions for large volumes at such low offers have been concluded by Chinese exporters.