After two consecutive weeks of downward movement, local Indian hot rolled coil (HRC) price have remained stable during the past week at INR 40,500 ($623/mt) ex-works amid month-end considerations, traders said on Monday, March 27.
"Market participants are unwilling to conclude transactions at the end of the month. Most are waiting for the pricing announcements for next months from the steel mills," a Mumbai-based trader said.
"As a result, the trading volume in the market is down and HRC prices may move either way from their current levels," the trader added.
Market sources said that there is a lot of talk that local steel mills are considering an across-the-board base price hike of around INR 1,000/mt ($15/mt) for all flat products and announcements are expected from the mills around the first week of April.
However, at least two traders said that any upward revision of prices next month is expected to worsen the market conditions and current price levels will come under renewed pressure given high inventories at dealers and the sustained slowdown in stock movements.
$1 = INR 65.03