Local mills expected to raise their prices in Indian domestic HRC market

Local Indian hot rolled coil (HRC) prices have continued to consolidate at higher levels, gaining INR 300/mt ($4.50/mt) over the past week to around INR 33,000/mt ($500/mt) ex-works amid reports of local mills getting ready to increase their October prices and low import transaction activity, traders said on Monday, September 28.
 
"It has been a very long time since local HRC prices recorded gains over four consecutive weeks," said a Mumbai-based trader.
 
"The market expects local mills to increase their October delivery prices now that imports have slowed down considerably," the trader added.
 
Market sources said that Chinese traders have been quick to lower their offers to offset the impact of 20 percent safeguard duty on flat product imports into India.
 
The sources said that for the first time ex-China HRC offers have fallen below the $300/mt mark, though local importers are cautious about concluding transactions given persistent slow demand and the Indian rupee maintaining weak below the INR 66 to a dollar mark.
 
Ex-China HRC offers have declined by $5-10/mt week on week to around $290/mt CFR Mumbai for October-November shipments, the sources said.