Local Indian hot rolled coil (HRC) prices have moved down for the second consecutive week to around INR 36,000/mt ($584/mt) ex-works, declining by INR 500/mt ($8/mt) amid stronger import competition, traders said on Tuesday, January 20.
A Mumbai-based trader said that, even after INR 500/mt ($8/mt) discounts were offered in the previous weeks, local HRC stocks showed no signs of faster movement and, with more import transactions reported last week, most dealers across the local markets have been forced to lower their prices once again by a similar INR 500/mt ($8/mt). The strong rebound of the rupee over the past few weeks to a one and half month high to around INR 61.68 to a dollar has also revived interest in imported HRC, he added.
Market sources said that ex-China HRC offers have decreased further by $20-25/mt to around $450-460/mt CFR Mumbai, which, together with the stronger rupee, prompted importers to increase their transaction volumes, putting fresh pressure on the domestic market.
The sources said that, with the slowdown in China and the rupee expected to gain ground on strong dollar inflows, ex-China offers for imported HRC may move down further and thereby increase price competition in the local market.
While domestic mills have already announced cuts in base prices of long products, it was just a matter of time before adjustments in flat product prices were announced, which explains the second consecutive fall in local prices, the sources added.
$1 = INR 61.68