Local Indian hot rolled coil (HRC) prices have edged down marginally by INR 100/mt ($1.5/mt) during the past week to INR 40,900/mt ($637/mt) ex-works amid low market activity and a weak demand outlook, traders said on Monday, May 8.
“For the second consecutive week, local HRC prices have sought lower levels. While declines have been small, they are still a clear indication of the weak demand outlook and the market’s aversion to concluding new transactions,” a Mumbai-based trader said.
“Prices are expected to move within a narrow range in the short term with Indian steel mills unlikely to make any changes to base prices while end-users are unwilling to restock,” the trader added.
Sources said that, while there are no official announcements from local steel mills on current month pricings, the indications are that the mills will maintain base prices unchanged for May deliveries despite the mounting inventories held by dealers.
At least two traders said that there have been reports of marginal discounts on offers around INR 200/mt ($3/mt) in the northern Indian market but this has not become widespread as yet.
$1 = INR 64.23