Local Indian hot rolled coil (HRC) prices have moved sideways in the past week at INR 35,500/mt ($551/mt) ex-works, against a backdrop of slow activity and negative sentiment, traders said on Monday, July 24.
“The sharp downward movement seen earlier in the month seems to have been checked, but sentiment remains low amid pessimism over end-user demand and the lack of buyers in the market,” a Mumbai-based trader said.
“In some regions such as markets in western India, reports indicate that dealers continue to offer discounts ranging at around INR 1,000/mt ($16/mt) but still fail to push volumes into the market,” the trader added.
Market sources said that, given the negative mood, the market is also not sure whether Indian steel mills will be able to sustain the $16/mt hike in their base prices announced earlier in the month.
The possibility of a roll-back of the base price hike is also prompting many dealers to postpone making fresh bookings, at least until a clearer picture emerges from Indian steel mills next week, the sources added.
$1 = INR 64.43