Downward pressure has gained momentum in the local Indian hot rolled coil (HRC) market, with prices softening for the second consecutive week, falling by around INR 300/mt ($4/mt) to INR 30,800/mt ($454/mt) ex-works amid the resumption of imports and sluggish demand conditions, traders said on Monday, January 25.
"After several months, HRC import transactions have been reported in the market during the past week. With the prospect of government imposition of a minimum import price receding, importers have begun concluding transactions for Chinese HRC," a Mumbai-based trader said.
"Local prices are also under renewed pressures from dealers who were unwilling to make fresh bookings amid sluggish demand and anticipations that the correction of prices will continue," the trader added.
Sources said that a number of transaction for small volumes have been concluded with ex-China HRC offers in the range of $300-320/mt CFR Mumbai. Even though the volumes in question have been small, the very fact that import activity has resumed after coming to a complete halt over the past few months has impacted market sentiment, the sources said.
$1 = INR 67.78