Local Indian HRC prices continue to consolidate at higher levels

Local Indian hot rolled coil (HRC) prices have continued to consolidate at higher levels, gaining INR 200/mt ($3/mt) over the past week to around INR 33,700/mt ($521/mt) ex-works amid falling import competition and restocking by dealers, traders said on Monday, October 12.
 
"I really don't even remember the last time HRC prices have recorded gains consistently over six consecutive weeks," a Mumbai-based trader said.
 
"With most local mills completing their price increase cycle and with HRC prices having a marginal downside risk in the short term, most dealers have increased their restocking activity," the trader said.
 
"Price consolidation has also been strengthened by reports coming in that HRC imports during September this year were down 14 percent from August, clearly showing that the safeguard duty imposed is effective in reducing import competition," he added.
 
Sources pointed out that the steady decline in prices of imported HRC has also eased off, with offers for ex-China HRC remaining stable in the range of $295-300/mt CFR Mumbai for November shipments, causing local importers to feel that import offer prices have bottomed out.
 
However, no significant import transactions have been reported during the past week as importers have been unsure of the short-term trend in the movement of the Indian rupee against the US dollar, the sources added.