"US buyers continue to be wary as HDG prices in North America have yet to bottom out. Our reports indicate that data on US import shipments have also showed signs of declining over the past month. Hence, the reluctance of US buyers to conclude fresh transactions," a Mumbai-based trader said.
"Indian HDG exporters are caught in a bind. Lowering their offers earlier in the month failed to drive export volumes. And now with the Indian currency once again appreciating against the US dollar, exporters have no leeway to further adjust their offers," the trader added.
Over the past week, the Indian rupee has appreciated to levels of INR 66.47 to the US dollar, a two-week high.
Market sources said Indian HDG offers to the Gulf Co-operation Council (GCC) market have also failed to evoke any response from buyers as demand in the region continues to be low. The lack of buying interest has been further aggravated by a fresh slump in the Gulf financial markets responding to dips in oil prices.
At least two traders pointed out that overall steel imports from India to the GCC market will remain sluggish if not worsen as governments in most of the GCC countries are slashing spending.