Local Indian hot rolled coil (HRC) trade prices have remained largely stable amid thin trading activity and widespread discounting both by mills and trade channels, reflecting prolonged weak demand among industrial users, SteelOrbis learned from trade and industry circles on Monday, February 12.
Sources said that HRC trade prices are stable at INR 57,000/mt ($686/mt) ex-Mumbai and unchanged at INR 57,650/mt ($694/mt) ex-Chennai in the south.
However, market participants across regions confirmed that mills have been pushing volumes into the market at a discount of INR 2,000/mt ($24/mt) and trade channels are heard to be discounting around INR 1,500/mt ($18/mt) and hence depending on booking volumes effective trade prices have been in the range of INR 53,000-54,000/mt ($634-650/mt).
“Trade channels are extremely cautious in committing fresh bookings to avoid making losses from higher inventory as the end of the fiscal year gets closer. We expect the market to remain range-bound until the end of March owing to year-end considerations, tight liquidity, the focus on inventory liquidation by traders and the absence of any driver of the market,” a Mumbai-based distributor said.
It has been learned from trade sources that high availability of cheaper imports is also keeping local prices depressed. According to market circles, an estimated volume of 61,000 mt of ex-China was traded during February 1-9, the average landed price for which worked out at around $590-600/mt.
$1 = INR 83.10