Local Indian hot rolled coil (HRC) prices have showed an upward trend gaining ground especially in Mumbai on the back of reports of no import bookings over the past week based on the anticipated imposition of a safeguard duty, coupled with expectations of base price increases by mills next month and distributors quoting higher prices to improve earnings as the fiscal year draws to a close, SteelOrbis learned from trade and industry circles on Monday, January 27.
Following discounted sales at INR 47,000/mt ($543/mt) reported in the previous week, sources said that HRC trade prices have risen by at least INR 500/mt ($6/mt) reaching INR 47,500/mt ($551/mt) ex-Mumbai, while prices in the south have remained at INR 47,000/mt ($543/mt) ex-Chennai.
The sources said that no import booking has been reported over the past week. Ex-China prices were being quoted at a higher level ahead of the holiday, while buyers have been reluctant to look at imports, expecting a safeguard duty to be levied soon and they have been cautious in order not to get caught by the tariff barrier.
“We do not know if the halt in imports will be sustained in the longer term, but it is a positive market support in the short term. Traders are also reacting positively to the pause in discounted sales and are quoting higher prices to improve earnings toward the close of the fiscal year,” a Mumbai-based distributor told SteelOrbis.
“Mills will be keeping a close watch on the improved market conditions and if they are sustained, producers will be looking at an upward base price revision in February. We expect base prices to rise by INR 1,000/mt ($12/mt). A more aggressive hike may be on the cards if a safeguard duty on imports becomes a reality in the next few weeks,” he added.
$1= INR 86.46
