Local Indian hot rolled coil (
HRC) prices have showed little change during the past week, remaining at INR 41,000/mt ($678/mt) ex-works even as discounts emerged in select markets amid a significant slowdown in inventory movements, traders said on Tuesday, September 9.
Market prices are holding up since large steel mills have announced unchanged base prices for the current month, but dealers' inventories are moving slowly and so buyers are reluctant to conclude fresh bookings, two Mumbai-based traders said.
Sources said that some traders in the northern Indian market have revived discounts of around INR 500/mt ($8/mt) as most are carrying high inventories.
Reports indicate discounts prevailing in other major western and southern regions but the size of the discounts cannot be independently confirmed.
The sources said that local prices have been kept stable despite slow movement of stocks because of negligible import competition.
Imported ex-
China HRC offers have moved down by $5/mt over the past week to levels of around $535-540/mt CFR Mumbai for October shipments, but local importers are seeking a further decline of $10/mt in offers, resulting in very few transactions being completed during the week, the sources added.