Local Indian hot rolled coil (HRC) prices have rebounded during the past week recording gains of INR 900/mt ($14/mt) to INR 34,500/mt ($522/mt) ex-works, on the back of the revival of sentiments triggered by antidumping duties, more steel mills announcing hikes in base prices, and restocking by dealers, traders said on Monday, August 22.
"With the price correction having run its course, dealers have been back in the market making fresh bookings as prices were perceived to have bottomed out. With more steel mills increasing flat product base prices by INR 500-1,000/mt ($7.50-14/mt), the mood in the market has become bullish," a Mumbai-based trader said.
"Most dealers are feeling much more comfortable in their ability to keep pushing volumes as end-users' bookings too have been rising following the recent correction," the trader added.
Market sources pointed out that the replacement of the minimum import price (MIP) with antidumping duty on imported HRC is expected to bring price stability to the market since the MIP was perceived as an ad-hoc measure and the market was uncertain over its tenure while the antidumping levy in contrast is a more stable long-term import protection measure and both mills and dealers are more comfortable with it.