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Indian HDG export offer prices drop on weaker currency - 14 October 2011

Indian export offer prices for hot-dip galvanized coils have declined by $30-40/tonne. A weak rupee saw exporters dropping offers in an attempt to stoke buying interest in sluggish overseas markets. Nevertheless transactions remain few, with exporters complaining of weak demand from foreign customers.

Indian offers for 0.5mm soft coils with 120 g/square metre zinc coating presently average $890/t fob, compared to $920-925/t fob a month ago. Similarly, offers for 0.3mm soft coils with 90 g/sq m coating stand at $920-930/t fob, down from $950-960/t fob a month ago. In the meantime, the Indian rupee weakened to Rs 49.02 as on 13 October from Rs 45.7 in early September.

“There are very few buyers in the market,” an official with a Mumbai-based mill laments. The mill is offering 0.3mm soft coils with 90g/sq m Zn coating to buyers in the US at $980/t cfr, including $50-60/t freight. This is lower than its offer of $1,020/t cfr last month. “But even at $980/t, no one is willing to buy,” he complains. The firm is also offering 0.3mm soft coils with 90g/sq m Zn coating to Italian buyers at $960/t cfr, including about $30/t freight.

A Mumbai-based source tells Steel Business Briefing most Indian mills are “hungry” for export orders. “Those who are desperate to book are making aggressive offers. But all this will change once mills have secured some orders and offer prices will again increase,” he expects.

 

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