Following reports of higher local hot rolled coil (HRC) trade prices in India over the past week coupled with slower trade volumes locally, market insiders have reported higher volumes of imports of HRC arriving in the country, which limit the upside potential of local prices.
Specifically, sizable volumes of around 65,000 mt in total of ex-Vietnam HRC have been sold to India at $590-595/mt CFR Mumbai and Chennai during recent days. “Initially, we heard around 20,000-30,000 mt were booked, though in the end the volumes were more sizable,” an Indian trader told SteelOrbis.
However, according to sources, no fresh deals have been reported for ex-China materials, as the current offers at around $570-575/mt CFR are considered “not workable for Indian customers due to the 8.5 percent duty”.
This week, local HRC trade prices in India have increased by INR 500/mt ($6/mt) to INR 54,400/mt ($653/mt) ex-Mumbai and are up INR 400/mt ($5/mt) to INR 55,300/mt ($664/mt) ex-Chennai in the south.
