Local Indian hot rolled coil (HRC) trade prices have remained stable amid scarce trading and continuing discounted sales by distributors reflecting weak demand and only need-based restocking by industrial users, SteelOrbis learned from trade and industry circles on Monday, February 19.
Sources said that HRC trade prices have remained unchanged at INR 57,000/mt ($687/mt) ex-Mumbai and are stable at INR 57,650/mt ($695/mt) ex-Chennai in the south. But bearish market conditions have been better reflected in net discounted prices in trade channels at INR 54,000/mt ($651/mt) ex-Mumbai and at INR 54,500/mt ($657/mt) ex-Chennai.
According to sources, apart from weak demand from industrial users, rising imports have continued to put pressure on local prices, with around 200,000 mt of import HRC reported to have been booked in the first weeks of February at the indicative import price of $565/mt FOB ex-China and $625/mt FOB for ex-South Korea material.
“Tight liquidity coupled with slow movement of stocks are keeping trade away from fresh bookings. Actual users are unwilling to restock to risk carrying high-priced stocks at the fiscal year-end,” a Mumbai based distributor said.
“Our assessment is that total February imports will exceed 500,000 mt booked in January and the rise in imports will put significant pressure on domestic prices. Under the circumstances, it is to be watched how domestic mills react at the time of setting March base prices,” he added.
$1 = INR 83.00