Local Indian hot rolled coil (HRC) prices have remained stable during the past week amid thin trading activity and the negative outlook, as the market remains under pressure from imports at a time when end-users are cautious about concluding fresh bookings, SteelOrbis learned from trade and industry circles on Monday, March 11.
Sources said that HRC trade prices are stable at INR 56,500/mt ($682/mt) ex-Mumbai and unchanged at INR 57,250/mt ($691/mt) ex-Chennai in the south, though reports have persisted of discounted sales in the range of INR 50,000-55,000/mt ($604-664/mt) in trade channels.
According to sources, import bookings in March have already touched around 0.22 million mt, largely ex-China volumes as per trade estimates, and so current prices have a greater downside risk going forward. “Rising imports are a big concern. Our assessment going by the trend is that March imports would exceed the 0.64 million mt booked in February. This is one reason why domestic steel mills have not given any indication on changing base prices for the current month. The stability in the market in the past week does not reflect the weak conditions. Local prices will slip further in the week ahead,” a Mumbai-based distributor said.
“With exports also declining and almost at a halt in some markets, HRC prices is still to see a new bottom,” he added.
$1= INR 82.80