Local Indian hot rolled coil (HRC) prices have remained unchanged during the past week at around INR 40,500/mt ($683mt) ex-works in quiet market conditions, while expectations of downward price adjustments have receded, traders said on Thursday, June 5.
According to a Mumbai-based trader, buyers have remained cautious about concluding fresh bookings as market expectations of downward price adjustments in June by local steel mills to boost demand have seemed faint.
While international HRC prices have been on a downward curve, local steel mills are unlikely to follow suit since domestic iron ore prices have been rising, the trader said.
NMDC Limited, the country's largest iron ore producer, hiked its prices on Wednesday, June 4 by INR 300/mt ($3/mt). At the same time, JSW Steel is resorting to imports of iron ore in face of rising domestic prices and shortages of supplies.
Globally, iron prices have been in a slump but are on the rise in the domestic market, and this will preclude any possibility of domestic mills lowering their HRC prices, the trader added.
Market sources said transaction volumes have been suffering since buyers have remained cautious as regards building up inventories at current price levels, accordingly, no demand uptick is expected in the short term and HRC prices are expected to move sideways.