After two consecutive weeks of downward movement, local Indian hot rolled coil (HRC) prices have bounced back, rising by INR 1,600/mt ($24/mt) during the past week to INR 34,400/mt ($515/mt) in reaction to the imposition of antidumping measures and revised safeguard duties, traders said on Monday, August 8.
“Although fresh buying activity in the market has remained modest, the downward pressures on prices have been checked by the import protection measures announced during the past week,” a Mumbai-based trader said.
“The import protection levies have also removed any possibility of downward HRC price adjustments by domestic steel mills for deliveries in the current month,” the trader added.
Market sources said that the combination of import protection measures has brought stability to the market but, with import shipments already at a halt, sustainability at current prices remains in doubt as the volumes transacted in the market are still low and as inventories at local steel mills remain on the high side.