Local Indian hot rolled coil (HRC) prices have remained unchanged during the past week at around INR 35,500/mt ($567/mt) ex-works amid low activity in the market, traders said on Monday, March 9.
According to a Mumbai-based trader, transaction volumes have fallen further during the week as end-users have been unwilling to build up inventories due to uncertainty over the prospects for any possible uptick in demand from the manufacturing sector.
"However, at the same time, the impact of low volumes on prices has been limited by the fact that the Indian rupee had been weakening, hitting a two-month low, which is expected to restrict imports and this has offered some support for local prices," the trader added.
Dull trading conditions have also attributed to uncertainties over local mills adjusting prices and there have been no indications in the market of the latter announcing any cuts during the current month, prompting buyers to adopt a wait-and-see approach.
Market sources said that a few local mills have made representations to India's steel ministry demanding antidumping investigations on HRC from China, citing the example of similar moves by the US Department of Commerce.
However, according to government officials, regarding alleged dumping of Chinese steel products, Indian steel mills will have to go through the appropriate channels and make an official complaint with the designated authority, namely, the Directorate General of Anti-Dumping and Allied Duties (DGAD), which has the sole authority for launching investigations.
Sources, however, added that there is no information available yet as to whether local steel mills will combine to make such an official complaint or not.
$1 = INR 62.66