Indian domestic hot rolled coil (HRC) prices have moved sideways at around INR 37,500/mt ($686/mt) ex-works during the past week amid lackluster market conditions, traders said on Tuesday, May 15.
"The local HRC market has showed little material change with prices moving sideways at higher levels, and low volumes reflecting a disconnect between prices and demand from user industries," a Mumbai-based trader said.
"The lack of discount offers from steel mills has also forced traders to limit volumes drastically since existing stocks have not been moving fast enough," the trader added.
However, several market sources have said the reluctance of traders to book higher volumes has been due to expectations of price corrections by local steel mills in response to softening import offers.
The sources said that HRC offers ex-China have edged down during the past week to $520/mt FOB for June-July shipments. However, the gap between domestic HRC prices in rupee terms and the landed price of imports has widened with the weakening of rupee against the dollar largely offsetting falling international offers.
However, any stabilization of the rupee would increase HRC shipments and import competition, and hence traders still prefer to wait and see before concluding bookings for June-July, the sources said.