Indian HRC prices find support from higher import offers

Indian hot rolled coil (HRC) prices have found support from a $5-10/mt increase in import offer prices to remain at INR 32,000/mt ($596/mt) although major producers have continued to offer discounts of around INR 1,000 /mt ($20/mt) to keep pushing inventories, traders said on Friday, November 2.
 
"Domestic steel mills have been able to maintain their base prices of HRC in view of higher import offers from China and South Korea and Indian importers declining to conclude transactions at higher levels," according to a Mumbai trader.
 
The increase in import offers is still very tentative and Indian steel mills are keeping a close eye on developments since a definitive upward trend would offset the advantage cheaper imports have from the gain of the rupee against the dollar, an official at an eastern Indian steel company said.
 
Domestic demand is still very moderate and does not offer a window to increase prices, but a firming up of import offers would enable producers to withdraw discounts later this month, the official said.
 
According to market reports, ex-China HRC offers have been quoted at $565/mt CFR and could gain $10-15/mt over the next few weeks as demand in the Gulf region gains momentum and this would give Indian producers opportunity to maintain prices during the lean festive period later this month, the official added.