Local Indian hot rolled coil (HRC) trade prices have remained stable over the past week amid thin trade volumes, with buyers declining higher offers and booking only small lots, while market participants have been awaiting the outcome of the ongoing safeguard duty investigation on imports, SteelOrbis learned from trade and industry circles on Monday, January 6.
Sources said that HRC trade prices are stable at INR 48,300/mt ($565/mt) ex-Mumbai and unchanged at INR 49,800/mt ($582/mt) ex-Chennai in the south.
According to sources, while import shipments landing at ports have been showing signs of declining, the volumes in absolute terms are still large and impacting local prices. It is estimated around 170,000 mt are scheduled to arrive at ports up to mid-January, still exerting a large and depressing impact on prices, considering the weak industrial demand persisting across sectors.
“Some distributors were heard to be quoting slightly higher prices. But bookings have been mostly for very small volumes at lower prices. There is strong buyer resistance to any price increases,” a Mumbai-based trader said.
“There are no positive drivers in the market. A safeguard duty on imports is the only element that is being awaited by all market participants. Till such time, we expect prices to move in a narrow range with a negative bias,” he added.
$1 = INR 85.50