Local Indian hot rolled coil (HRC) prices have moved up by INR 500-600/mt ($7.50-9/mt) during the past week to around INR 32,000/mt ($479/mt) ex-works in anticipation of a government measure to protect against imports and a hike in base prices by domestic steel mills, traders said on Monday, September 7.
"The market is rife with speculation that the government will impose safeguard duty on steel imports during the current month, providing support for local HRC prices," a Mumbai-based trader said.
"Local mills are also expected to increase flat steel product prices backed by the Indian rupee stabilizing at levels weaker than INR 66 to the US dollar," the trader added.
Market sources said that the fall in HRC import offer prices is also easing off with ex-China offers moving down by a marginal $5/mt to the range of $310-320/mt CFR Mumbai for October shipment, leading a number of market participants to talk of import pricing nearing a bottom.
However, the sources said that import transaction volumes are lower than in the previous months, with importing traders unsure of the rupee's movement in response to the anticipated interest rate hike by the US Federal Reserve.
$1 = INR 66.75