Local Indian hot rolled coil (HRC) prices have remained stable for the second consecutive week at INR 45,500/mt ($703/mt) ex-works but trading activity is still scarce owing to year-end considerations, traders said on Monday, March 26.
Sources said that dealers are sharply reducing fresh bookings owing to the financial year ending on March 31, 2018 and in view of the limited working capital credit available from banks for the current year, resulting in low market activity.
Some traders even expect domestic steel mills to marginally adjust their HRC base prices next month, in view of the softening of global prices, while at least two traders expressed a differing viewpoint, maintaining that, with low import competition and the Indian rupee weakening against the US dollar, Indian steel mills will not be under pressure to lower their base prices.
“I would feel that domestic HRC prices will remain flat in the short term as most key fundamental drivers are uncertain and as dealers will be cautious in maintaining inventories,” a Mumbai-based trader said.
“A few domestic steel mills are seeking a mid-term review of antidumping duty rates on flat products and, if a review finally does increase the present rate, it would offer fresh opportunities for steel mills to hike base prices again at the start of the next fiscal year,” the trader added.
$1 = INR 64.72