Indian domestic hot rolled coil (HRC) prices are expected to remain in the range of INR 36,250-36,750/mt ($655-654/mt) +VAT ex-works in July, since the weakening of international prices has been offset by the continuing slide of the rupee against the dollar, a local trader said on Tuesday, July 10.
Indian mills are under little pressure to reduce HRC prices amid weakening international prices, since inventory levels at the plants are moderate and the depreciating rupee has been offering healthy protection against imports, the trader said.
The rupee fell to its lowest level in more than a week against the dollar on Monday. Despite a slight rebound early on Tuesday, currency traders forecast continuing weakness against the background of concerns over inflation and macroeconomic growth data.
There have been reports of ex-Russia and ex-Saudi Arabia offers of HRC in the price range of $645-650/mt CFR India, but no shipments have been confirmed in view of the volatility of the rupee, the trader said.
In June, the import price of HRC in dollar terms declined by 3.9 percent, while the cost in rupees was up 4.1 percent, the trader stated. He added that, with currency volatility unabated in the first week of July, producers are in no hurry to change their prices.
$1 = INR 55.36