Local Indian hot rolled coil (HRC) prices have continued to record gains for the third consecutive week, moving up by INR 250/mt ($4/mt) over the past week to around INR 31,750-31,900/mt ($476-478/mt) ex-works, although increase margins have differed in various regions, traders said on Monday, January 11.
"HRC prices have been firmly in a positive zone. However, the gains seen during the week have varied across the different regions," said a Mumbai-based trader.
"With imports coming to a complete halt, gains in HRC prices depended on the distances of mills from consumption centers and logistical costs, and so the price rise has been most noticeable in northern Indian consumption markets," the trader added.
Sources said that upside potential in HRC prices is somewhat limited by the impending public hearing on the 20 percent safeguard duty which had been convened by India's Directorate General of Safeguards (DGS) for next month.
Although the market does not expect any reversal of the levy, but uncertainties over any possible reduction of the rate of the levy is a damper to the upward movement of HRC prices although most local steel mills have already announced that their base prices will be maintained unchanged through February, the sources added.
$1 = INR 66.73