Local Indian hot rolled coil (HRC) prices have remained stable during the past week at around INR 32,400/mt ($508/mt) ex-works in the absence of any indication of price adjustments by domestic steel mills and given the upward trend of import offers, traders said on Monday, August 10.
According to a Mumbai-based trader, there have been no indications of a possible adjustment of flat product prices by local steel mills for the current month, which has prompted most dealers to keep their prices unchanged.
Transaction volumes have been on the low side but local prices have found some support from the increases seen in import offers, he added.
Market sources said that ex-China HRC import offers have increased by $10-15/mt to around $330-340/mt CFR Mumbai for September deliveries, but importers have only concluded deals for limited transaction volumes as few have been willing to risk uncertain movements in the Indian rupee, which lately has been moving in either direction against the US dollar.
Some sources have said that the market is rife with speculation that the Indian government may impose safeguard duty on imported HRC of 20-30 percent and, though no confirmation of this is available from government ministries, fresh tariff protection for domestic steel mills has checked interest in imports and offered support for local producers' prices.
$1 = INR 63.77