Local Indian hot rolled coil (HRC) prices have remained stable during the past week at INR 43,750/mt ($651/mt) ex-works as downward pressures have eased, though trading activity has declined amid lackluster market conditions, traders said on Monday, February 6.
"With the national budget failing to meet expectations of increased government spending which would kickstart the economy and with the market also awaiting pricing indications for the current month, most buyers have stayed on the sidelines in the past week," a Mumbai-based trader said.
"The flat product outlook continues to be bearish in the absence of any sign that higher government spending will catalyze sluggish industrial production," the trader added.
Market sources said that, in view of the Indian currency steadily appreciating against the US dollar, HRC export shipments by large steel mills are expected to taper off, which may increase supply-side pressure on domestic prices.
India's Ministry of Steel is also scheduled to withdraw the minimum import price on certain specific grades of steel products, which has also prompted market participants to maintain a wait-and-see stance instead of concluding bookings at current price levels, the sources added.
$1 = INR 67.20