Local Indian hot rolled coil (HRC) prices have remained at around INR 40,000/mt ($652/mt) ex-works, as market activity has limped backed to normal after the festive holidays, amid slack buying interest in domestic HRC, traders said on Tuesday, October 28.
According to a Mumbai-based trader, with local steel mills refusing to adjust prices in line with falling demand, local HRC has been facing resistance in the market resulting in low volumes and stagnant prices.
At the same time, there are reports in the market of transactions being concluded for ex-China HRC at around $515-520/mt CFR Mumbai for end of November shipments, further aggravating buyers' disinterest in local products, the trader added.
Market sources said that local steel mills are giving out mixed signals as far as pricing of flat products is concerned, with a few like JSW Steel announcing downward price adjustments for HRC, while others like Tata Steel and Steel Authority of India Limited (SAIL) have kept their base prices unchanged. In response, buyers are adopting a wait-and-watch policy, while interest in concluding import transactions has been on the rise, the sources added.