Local Indian hot rolled coil (HRC) prices have remained stable during the past week at INR 45,500/mt ($699/mt) ex-works but trading activity has become scarcer, with dealers reducing their booking volumes, traders said on Monday, March 19.
“With most Indian steel mills completing their base price revisions earlier in the week, HRC prices have been stabilizing at higher levels. However, dealers have reduced their booking volumes to prevent large cash outflows at current prices and avoid too large an inventory buildup,” a Mumbai-based trader said.
At least two other traders said that there have been reports in the market of Indian importers having booked two import transactions for ex-South Korea HRC but, with these being of modest volumes, it is too early to say whether imports are reviving and if there will be an impact on local Indian HRC prices.
However, the two traders were quick to add that the weak Indian currency is expected to offer a natural check on import competition.
$1 = INR 65.08