The downward movement of local Indian prices for hot rolled coil (HRC) prices has been checked by rumors of safeguard duty on imports and so prices have remained stable during the past week at around INR 31,400/mt ($477/mt), traders said on Monday, August 24.
According to a Mumbai-based trader, even though the Indian government had officially ruled out any further hike in import duties, there has been a lot of anticipation in the market of the government announcing a safeguard duty on HRC imports from China, and this has provided support for local prices.
The rumors of a safeguard duty have also removed any possibilities of local steel mills adjusting HRC prices downwards for September deliveries and distributors have continued to hold their prices stable despite low volumes continuing to be the hallmark of market conditions, he added.
Market sources said that the easing of import transaction activity has also provided support. The Indian rupee is at around INR 65.93 a dollar and is forecast to breach the INR 66 to the dollar mark and this has been keeping local importers from concluding any significant transaction volumes during the past week.
Market sources said that ex-China HRC offer have fallen by about $10/mt over the past week to around $320-330/mt CFR Mumbai for September shipments, but buyers have declined to conclude transactions fearing a further slide in value of the Indian rupee.