Local Indian hot rolled coil (HRC) prices have remained stable for the second consecutive week at around INR 32,500/mt ($507/mt) amid subdued market conditions, traders said on Monday, July 27.
According to a Mumbai-based trader, buyers are not inclined to conclude deals for significant volumes due to end-of-month considerations, with some market players expecting some August price adjustments by local mills.
The trader said that a rise in import offers during the week has also provided support for local HRC prices even though trading volumes have remained very low.
According to market sources, Chinese HRC offers have increased by $5-10/mt to the range of $330-340/mt CFR Mumbai for late August shipments, though very few transactions have been reported in the market.
The market has been caught unawares by the rise in import offers and, with expectations of local steel mills adjusting local HRC prices, buyers prefer to wait for a definite trend to emerge early next month before returning to the market, the sources added.
$1 = INR 64.14