Sharp fall in transaction volumes in local Indian HRC market

Wednesday, 24 September 2014 17:45:07 (GMT+3)   |   Kolkata
       

Local Indian hot rolled coil (HRC) prices have declined by INR 300-500/mt ($5-8/mt) during the past week to around INR 40,500/mt ($645/mt) ex-works as dealers have sought to adjust prices to cope with falling volumes, traders said.

"Transaction volumes have fallen sharply during the past week, indicating that outlook for HRC demand has been very negative. The downward adjustments were highest in the northern and western regions of the country, the two most important markets," a Mumbai-based trader said.

"The market seems to have been taken aback that contrary to expectations for a demand uptick, demand and trading volumes are actually falling rapidly, forcing dealers to lower prices so as to avoid high stocks before the festival season starts," he said.

Sources said that the slowdown could worsen unless local steel mills adjust base prices to keep volumes moving in the market.

The steel mills, which are fighting rising input costs, particularly the high price of domestic iron ore at a time when global prices are falling, are expected to decide on a new pricing strategy at the end of this month or after the festival season, the sources said.


Similar articles

Flat steel prices in local Taiwanese market - week 13, 2024

28 Mar | Flats and Slab

European HRC prices keep falling, demand still shows signs of fatigue

28 Mar | Flats and Slab

Vietnam’s Hoa Phat and Formosa seek AD investigation on Chinese HRC

28 Mar | Steel News

Major steel and raw material futures prices in China - March 28, 2024

28 Mar | Longs and Billet

UAE’s HRC market still sluggish, offers from India fall slightly

27 Mar | Flats and Slab

Import HRC prices in Vietnam retreat again due to slump in China

27 Mar | Flats and Slab

Vietnam’s Hoa Phat produces nine millionth mt of HRC

27 Mar | Steel News

Major steel and raw material futures prices in China - March 27, 2024

27 Mar | Longs and Billet

HRC consumption in Mexico up 30.6 percent in January

26 Mar | Steel News

Local HRC prices sink further in Turkey

26 Mar | Flats and Slab