Local Indian hot rolled coil (HRC) trade prices have remained stable amid lackluster trading conditions owing to the festival holidays, and due to the lack of base price clarity from mills, SteelOrbis learned from trade and industry circles on Monday, March 25.
Sources said that HRC trade prices have remained stable at INR 56,500/mt ($679/mt) ex-Mumbai and unchanged at INR 57,250 ($688/mt) ex-Chennai in the south. But the sources pointed out that despite very low activity by both trade channels and actual users, small tonnages of material have continued to be sold at deeply discounted prices ranging at around INR 54,000/ mt ($649/mt) particularly in the western and northern regional markets, while some offers have been voiced at as low as INR 51,000/mt ($611/mt).
“The combination of holidays for Holi (festival of colours) and year-end considerations were keeping buyers out of the market. Buyers are seeing an oversupply in the market and hence further price decline potential, and so are deferring any new commitments,” a Mumbai-based distributor told SteelOrbis.
“Inventory pressures are mounting on mills, we are hearing. Hence, the market expects some price support action from mills to bolster trade activity. Mills have maintained base prices in March and there is no clarity on whether the producers will be proactive in supporting the market by reducing base prices in April. Despite the market expectations, our own assessment is that mills will be extremely hesitant to drop prices and would continue to protect their own margins,” he added.
$1 = INR 83.20