Local Indian hot rolled coil (HRC) prices have remained unchanged during the past week at around INR 39,000/mt ($631/mt) ex-works amid lackluster market conditions and import pressures forcing buyers to delay transactions, traders said on Tuesday, November 18.
According to a Mumbai-based trader, there is no appetite in the market for flat products, with dealers already carrying sufficient HRC stocks, and fresh bookings during the week have been negligible.
"Local steel mills have kept their base prices unchanged despite falling demand. At the same time, import offers have dipped and buyers have preferred to remain on the sidelines and are still cautious as market fundamentals are weak," he said.
Market sources said that offers for imported HRC have fallen by $5/mt week on week to the range of $490-495/mt CFR Mumbai for December-January shipments, but have failed to attract buyers.
The market has been expecting pressures from oversupply since local steel mills are unable to push HRC volumes into overseas markets.
HRC export offers have moved down by $10/mt over the past week to the range of around $510-515/mt on FOB basis, while exporters are only willing to conclude deals for large volumes, sources added.
$1 = INR 61.78