Local Indian HRC prices stable amid unchanged market conditions
Prices in the local Indian hot rolled coil (HRC) market have remained stable during the past week at INR 39,000/mt ($600/mt) ex-works, with little material change in market conditions, traders said on Monday, November 20.
“Prices are holding up even as transactions volumes continue to remain low. Dealers are cautious in increasing inventories in view of dull demand conditions but prices are still able to sustain as domestic steel mills are expected to maintain base price through the coming months,” a Mumbai based trader said.
“With ex-China HRC export offers showing signs of retreating, the market is expecting this to dampen export sentiments among local steel mills. But I do not think that this will make a big impact on local HRC prices,” he added.
But at least two other traders said that local HRC prices were critically poised and could move either direction as end users were not inclined to make large bookings and negative sentiments over fall in manufacturing growth index.
They said that the market is keeping a close watch on price of coking coal import cargoes which is showing signs of firming up and this could be cited by local steel mills to hike November base price but added that has not led to any rush to make new bookings at current prices for now.
$1 = INR 65.09
*This was published on SteelOrbis website on November 20, 2017.