Local Indian hot rolled coil (HRC) prices remained stable amid low trading activity from weak demand conditions leading to some reports of discounted sales by section of trade channels, SteelOrbis learned from trade and industry circles on Monday, June 17.
Sources said that trade HRC price was unchanged at INR 55,500/mt ($664/mt) ex-Mumbai and stable at INR 56,000/mt ($670/mt) ex-Chennai in the south. However, weak demand and low bookings from industrials were reflected in reports of discounted sales by distributors at around INR 53,000/mt ($634/mt) in the western regional market and at INR 55,000/mt ($658/mt) in the northern region.
According to the sources, end-users were extremely cautious in committing fresh bookings and unwilling to carry large raw material inventories, while trade channels were extremely aggressive in liquidating stocks and, hence offering large discounts.
According to information collated from a steel sector analyst with a Mumbai financial advisor firm and trade circles, an estimated volume of 40,000 mt ex-South Korea HRC was expected at Chennai port in the current month. Additional arrivals of around 90,000 mt ex-Vietnam and 75,000 mt ex-China were expected arrivals in July-August.
The landed price for duty-free imports from ex-South Korea is estimated at around $595/mt CFR while ex-China material excluding duty is estimated at $555/mt CFR.
These prices were expected to increase pressures on local HRC trade prices in the June-August period and distributors were expected to be forced to be more aggressive in discounted sales to keep stocks moving, the sources said.
$1= INR 83.60