Local Indian hot rolled coil (HRC) prices have remained unchanged during the past week at around INR 39,000/mt ($630/mt) ex-works despite negligible transaction volumes and falling demand, traders said on Tuesday, November 25.
"Globally steel prices have been falling but local Indian steel mills have maintained their prices. In such conditions and with domestic demand on a downward curve, actual users and dealers are in no mood to increase stocks," a Mumbai-based trader said.
"Market conditions are extremely bleak with transaction volumes plummeting across all regions of the country. But this has not been reflected in prices since steel mills have been keeping their base prices unchanged," he added.
Market sources said that import volumes have also been falling as most of the benefits from lower offers have been negated by the steady weakening of the Indian rupee and importers have been reluctant to conclude deals for inward shipments.
The Indian rupee has weakening sharply over the last three days, depreciating to INR 61.94 to a dollar and sources said that any exchange rate level around INR 62 made the landed price of imported HRC unviable.
$1 = INR 61.94