Local Indian HRC prices edge up after mills hike base prices but discounted sales emerge

Monday, 20 May 2024 13:42:04 (GMT+3)   |   Kolkata
       

Local Indian hot rolled coil (HRC) trade prices have edged up in reaction to mills increasing base prices, but demand and trade activity have continued to remain weak, with buyers negotiating prices only for very small tonnages, SteelOrbis learned from trade and industry circles on Monday, May 20.

Sources said that HRC trade prices are up INR 900/mt ($11/mt) to INR 53,900/mt ($646/mt) ex-Mumbai and are up INR 900/mt ($11/mt) to INR 54,900/mt ($657/mt) ex-Chennai in the south after some large mills increased base prices for May by a range of INR 1,500-2,000/mt ($18-24/mt).

The sources said that producers increased prices leveraging market sentiments of a possible supply tightening with some mills going into maintenance shutdowns in May and June, but without any significant changes on the demand side, leading to trade activity being restricted to very small tonnages.

Some traders, however, claim that some trades reported from western regional markets have been concluded at discounts of around INR 600/mt ($7/mt) even for small volumes, indicating demand weakness and that current inventories in trade channels are “comfortable” and more than compensate for the lower supplies from mills.

“There are a lot of challenges on the demand side both economic and political. The recent increase in base prices by producers is having a negative impact reflected in steadily falling booking volumes,” a Mumbai-based distributor told SteelOrbis.

“Trade is carrying a lot of inventory and, with buyers reducing booking volumes, distributors in some regions are pushing discounted sales,” he said.

$1 = INR 83.50


Similar articles

US flat steel pricing flat to lower as market considers sideways to down November scrap call

08 Nov | Flats and Slab

Global View on HRC: Stability spreads across markets, trading slows

08 Nov | Flats and Slab

Chinese domestic PPGI prices move down

08 Nov | Flats and Slab

Major steel and raw material futures prices in China – November 8, 2024 

08 Nov | Longs and Billet

Vietnam's HRC import prices mainly stable in occasional deals

08 Nov | Flats and Slab

Turkey’s HRC exports increase by 134.0 percent in January-September

08 Nov | Steel News

Turkish flats market remains weak, HRC prices soften only slightly

07 Nov | Flats and Slab

European HRC prices stable in line with slow trade, most import offers uncompetitive

07 Nov | Flats and Slab

Flat steel prices in local Taiwanese market - week 45, 2024

07 Nov | Flats and Slab

India launches AD investigation into imports of alloy, non-alloy hot rolled flat products from Vietnam

07 Nov | Steel News