The previous relative stability of the trend of the local Indian hot rolled coil (HRC) market has given way to a downward movement with prices losing INR 750/mt ($11/mt) during the past week to INR 43,000/mt ($642/mt) ex-works amid anticipation of renewed import competition and fears of a further slowdown in domestic demand, traders said on Monday, February 13.
"The market is geared to face higher imports and pressures on local HRC prices. With the minimum import price being progressively withdrawn on more steel product categories, local HRC prices are being adjusted for higher imports," a Mumbai-based trader said.
"Of course, the government is replacing the minimum import price with antidumping duties on flat products, as a longer-term protection, but the market expects higher volumes of imports despite such levies and so local HRC prices have moved down to lower levels during the past week," the trader added.
Market sources said that most domestic mills have kept their base prices unchanged for the current month. However, current stock movements of dealers have slowed down further with end-users reducing booking volumes, indicating a slowdown in demand, the sources added.
$1 = INR 66.98