Singapore (Platts)--27Dec2012/349 pm EST/2049 GMT

Indian hot rolled coil producers are considering a rise in base prices in January on a persistently weak Rupee and a quiet import market, but are well aware they might meet resistance, local market participants told Platts.

"Our external target is an increase of Rupee 1,000/metric ton ($18/mt), but our internal target is Rupee 750/mt," a Mumbai-based mill official said.

JSW Steel is yet to decide its base prices for next month but a Mumbai-based company official said there was "a case for a price hike".

As previously reported, a price increase announced by producers in December was only partially accepted by the market as demand remained sluggish.

Transaction prices for IS 2062 grade A/B structural HRC, 3mm thick and above, presently average Rupee 33,000-33,500/mt ex-works, equivalent to an import parity level of $559-567/mt at a 7.5% import tariff.

The Rupee topped 55 to the US dollar Friday, and stood at 54.84 late Thursday. Import buying interest has also been muted since end-October. As a result, import volumes are expected to thin for several weeks starting mid-January.

There were unconfirmed reports of a deal involving about 25,000 mt of CIS-origin 08KP grade HRC said to be concluded last week at $545/mt CFR Mumbai, including about $60/mt freight.

But Indian market participants were surprised by this development as offers for CIS-origin HRC have recently averaged $530-540/mt FOB Black Sea, equivalent to $590-600/mt CFR Mumbai.

--Anitha Krishnan, anitha_krishnan@platts.com --Edited by Jeremy Lovell, jeremy_lovell@platts.com