Local Indian hot rolled coil (HRC) prices have increased for the second consecutive week, moving up by INR 300-500/mt ($4.50-7.50/mt) to around INR 32,500/mt ($489/mt) ex-works amid government's announcement of safeguard duties on imports but trading volumes fell sharply during the past week, traders said on Monday, September 14.
The government announcement of 20 percent safeguard duty on steel flat product imports has provided support for local prices and local steel mills are also expected to maintain their base prices, a Mumbai-based trader said.
But the latest import tariff protection has coupled with steadily weakening rupee below the INR 66 to a dollar and has impacted buying sentiments, resulting in fewer deals in the market, the trader added.
Market source said that responding to the new Indian safeguard duty Chinese exporters have quickly adjusted their prices and Chinese offers are still moving down towards below the $300/mt mark.
The sources said that ex-China HRC offers have declined by $5-10/mt during the past week to the range of $305-310/mt CFR Mumbai for November shipments but local importers have reduced transactions for significant volumes, wary of currency risks.
$1 = INR 66.36