Local Indian hot rolled coil (HRC) prices have remained stable for the second consecutive week at INR 35,500/mt ($530/mt) ex-works amid dull market conditions and anticipations of a possible price correction to set in, traders said on Monday, May 30.
“There are no clear signals from local steel mills on flat product prices for next month. Dealers are seen to be postponing fresh bookings until short-term directions become clearer in the market,” a Mumbai-based trader said.
“Sentiments are very bearish. Expectations of a price hike by local steel mills have been replaced by expectations of a price correction as some steel mills are reportedly carrying large stocks,” the trader said.
“There has been a decline in demand from end-users and the market is grappling with weak demand and, unless there is much change in the situation, dealers will have no option but to resort to discounting again to keep pushing volumes,” he added.
A section of market sources said that some traders in the western region of India are already offering discounts of around INR 500/mt ($7/mt) and this could spread to other markets if prices remain flat without any demand uptick over the coming week.
$1 = INR 67.30