Local Indian hot rolled coil (HRC) prices have continued to consolidate at higher levels for the second consecutive week, increasing by INR 1,000/mt week on week to INR 42,000/mt ($588/mt) ex-works, in reaction to the fall in import shipments and the slight uptick in fresh bookings by end-users, traders said on Monday, February 18.
“Import volumes have definitely been falling over the past few weeks amid speculation that a hike in import duty will be inevitable based on sustained pressures from domestic steel mills on the government, even though the latter has clarified that such a moved has been deferred at least for now,” a Mumbai-based trader said.
“Prices have also found support from the improvement in volume bookings by end-users. However, doubts still persist over the sustainability of the rise in demand,” the trader added.
Market sources said that sentiments are likely to have been boosted by the trickle of reports suggesting that high inventories at steel mills may be showing signs of decreasing and this, coupled with attempts of local producers to increase margins as the fiscal year draws to a close has been fuelling local HRC prices.
$1 = INR 71.4