The Indian domestic hot rolled coil (HRC) market has moved sideways during the past week with local prices remaining at around INR 37,500/mt ($681/mt) ex-works as local producers have their kept prices unchanged despite low demand and importers adopting a wait-and-see strategy, traders said on Tuesday, May 21.
"Major producers have continued to ignore weak demand and low volume off-take in local markets by refusing discounts and maintaining high price levels, despite the weakening of HRC prices in most southeast Asian markets," a Mumbai-based trader said.
"Low international HRC prices have not attracted local importers who have preferred not to conclude transactions because of the volatility of the rupee against the dollar," the trader added.
Market sources said that there has been speculation in the market that domestic producers have in fact been considering a price hike early next month despite the global price softening, taking advantage of the weak local currency.
However, HRC volume bookings by traders have continued to be low despite speculation about another price increase, indicating the fundamental weakness in demand from user industries, the sources added.