Local Indian hot rolled coil (HRC) trade prices have showed stability amid moderate trading activity and are expected to remain range-bound in the short and medium terms, with large distributors heard to be facing liquidity challenges, limiting their ability to restock, SteelOrbis learned from trade and industry circles on Monday, April 15.
Sources said that HRC trade prices have remained stable at INR 51,800/mt 622/mt) ex-Mumbai and are unchanged at INR 52,500/mt ($630/mt) ex-Chennai in the south. However, according to sources, prices at lower levels or at around INR 49,000/mt ($587/mt) for April delivery have also been voiced among Indian buyers, while at the same time there have been some reports of higher prices at around INR 53,500/mt ($642/mt) in the northern regional market of Faridabad, the sources said.
“The market currently lacks a clear direction. Trade channels are, hence, cautious on restocking. Also, banks are tightening lending norms, resulting in liquidity challenges for distributors,” a Mumbai-based distributor said.
“Supply-side pressures will continue to weigh on prices. Most large mills are reporting highest-ever production levels and high mill capacity utilization. There is a lot of nervousness in the market from political uncertainties, the national elections starting later this week, and the divergent outlook on demand,” he said.
$1 = INR 83.30