Local Indian hot rolled coil (HRC) prices have consolidated at higher levels of INR 39,000-39,500/mt ($622-630/mt) ex-works amid the modest recovery in transaction volumes and the withdrawal of discounts, traders said on Wednesday, November 6.
According to a Kolkata-based trader, transactions volumes have showed improvements as market activity has increased after the festival holidays over the weekend.
Producers have maintained their base prices for the month and comparatively higher bookings enabled distributors to withdraw any volume-based discounts, the trader said.
However, the trader also said that buyers have remained cautious in wake of reports that imported HRC offers have been showing a downward trend, softening by $20-25/mt FOB ex-South Korea and ex-China, although there have been no reports available of any import transactions being concluded over the past week.
Sources said that, with the depreciation of the rupee in check and with demand remaining steady albeit at low levels, the local Indian HRC market is expected to remain range bound unless import offers continue to move down, resulting in stronger import competition.
$1 = INR 62.71