Local Indian hot rolled coil (HRC) prices have remained stable during the past week at INR 34,500/mt ($516/mt) ex-works amid a lack of buying activity due to year-end considerations, traders said on Monday, March 28.
“Market activity has been down significantly during the week since buyers have stayed away as the end of the current financial year on March 31 draws closer,” a Mumbai-based trader said.
“Also, the extended weekend holiday for the Indian Festivals of Colors and Easter has contributed to the dull trading in the market,” he said.
Market sources said that most dealers had built up sufficient stocks since early March and have not had the appetite for more bookings, even though there are expectations that local steel mills may opt for another round of price hikes next month.
A source said that some of the large steel mills unofficially say that steel prices still have a significant room for upward movement and that mills may go in for a marginal April price hike of around INR 500/mt ($7/mt).
India’s Directorate General of Safeguards (DGS) is scheduled to meet today Monday, March 28, to take a decision on the further extension of the 20 percent safeguard duty on imported steel until March 2018 and local steel mills are awaiting the decision and an across-the-board price hike is expected later this week, the source said.