Following reports of falling trade volumes in the local HRC market in India this week, market insiders have reported higher volumes of imports of HRC in the country, which limit the upside potential of local prices.
Specifically, sizable volumes of around 100,000 mt in total of ex-China SS400 have been sold to India at $575-585/mt CFR during the last two weeks, while at the end of last week-beginning of this week deal prices have increased to $588-590/mt CFR.
Furthermore, according to sources, at least 30,000-35,000 mt of ex-Vietnam HRC have been sold to Indian customers at $620-630/mt CFR. “We heard Vietnam sold in total over 80,000 mt during the past weeks, but Formosa Ha Tinh’s quantities should not be as big as before because we heard their BIS export license expires in early December,” an international trader told SteelOrbis.
Besides, according to sources, another deal for ex-South Korea SAE1006 HRC has been signed in India at $640/mt CFR this week.
“There is adequate demand to absorb the hike. At the same time, the local currency hovering at a historical low against the US dollar at INR 83.00 affects import competition,” a local trader said.
This week, domestic HRC trade prices have remained unchanged at INR 57,700/mt ($695/mt) ex-Mumbai and are also stable at INR 57,400/mt ($692/mt) ex-Chennai in the south, as SteelOrbis has reported.