The local Indian hot rolled coil (HRC) market has declined for the second consecutive week, with prices edging down by INR 500/mt week on week to INR 38,500/mt ($598/mt) ex-works, while domestic steel mills have kept base prices unchanged but have started to offer volume discounts, traders said on Monday, June 12.
“As expected, Indian steel mills have kept prices unchanged for current month deliveries, but most of them have started offering volume discounts in the range of INR 500-1,000/mt for June deliveries, clearly reflecting the large inventory build-up at mills,” a Mumbai-based trader said.
“Personally, I do not think that the volume discounts on offers will make much difference to market activity. With demand extremely sluggish, no dealers will be willing to make fresh bookings of such volumes that would make them eligible for the discounts on offer. Dealers are also already carrying large stocks,” the trader added.
Market sources said that Chinese HRC offers have fallen by around $20-30/mt on CFR basis and, with the Indian rupee inching towards INR 64 to the US dollar, threats of a rise in import competition is also putting additional pressures on local HRC prices in India.
$1 = INR 64.38