Indian hot rolled coil (HRC) domestic prices have managed to remain at INR 32,000/mt ($596/mt) supported by the increased import offers from Chinese and Russian steel mills, traders said on Friday, October 19.
"Import offers for HRC ex-China and ex-Russia are being quoted $20-25/mt higher at $560-570/mt CFR Mumbai, which negated advantages of lower import price from the appreciating rupee," a Mumbai-based trader said.
"There are, however, no reports of significant volume bookings by Indian importers amid expectations that Chinese mills will reduce prices in the coming weeks. This has helped domestic prices to remain firm after losing ground in the previous week," the trader added.
According to Kolkata-based traders, trading activity in the market is very dull with low volumes ahead of the spate of holidays starting next week for the Hindu festivals and the Feast of Sacrifice.
"Indian importers are not making any significant transactions ahead of the holidays and are expecting import offers to settle down thereafter," the trader said.
"There is also some uncertainty over Russian HRC prices. Import offers to India have increased, but offers to the EU have been lowered by $10-15/mt during the week on FOB basis. Hence, with no pressing demand, traders prefer to wait for a definitive trend in Chinese import offers after the holidays before concluding transactions," he added.
According to market sources, the lull in imports has enabled domestic steel mills to keep base HRC prices unchanged, while downside risks because of the appreciating rupee have receded and domestic HRC prices are expected to be range-bound over the next fortnight.