Indian exports of hot dip galvanized (HDG) coil have been characterized by low activity during the past week with few takers for offers at around $880/mt CFR US, traders said on Wednesday, June 11.
According to a Mumbai-based trader, with steel prices remaining stable in the US market during the given week, there has been very little interest in Indian HDG offers at current levels and neither have Indian exporters been ready to lower offers to push volumes.
Indian HDG exporters have been lacking in pricing power and have been losing out to competition from Chinese steel mills which had aggressively adjusted their offers to push volumes in the US and Europe, the trader said.
Sources said that demand in the Gulf market has remained stable but only modest export volumes have been reported in the market at around $770/mt CFR.
Bids from Gulf buyers at the lower end of the offer range at $740/mt have been turned down by Indian exporters as the Indian rupee is expected to gain against the dollar in the short term, sources said.