Local Indian hot rolled coil (HRC) prices have showed no change during the past week, remaining at around INR 40,000/mt ($661/mt) ex-works amid low volumes due to the approach of holidays and the reluctance of buyers to conclude new bookings until prices are adjusted, traders said on Tuesday, October 21.
According to a Mumbai-based trader, against the backdrop of the extended weekend ahead for the Hindu Festival of Lights and the end of the accounting year for some privately-held firms, buyers are reluctant to conclude transactions preferring to maintain cash liquidity.
At the same time, ex-China HRC import offers have moved down again by around $5/mt during the past week to $510-515/mt CFR Mumbai, the trader said.
With local steel mills having kept their base prices of flat products unchanged, buyers are on the sidelines waiting either for steelmakers to adjust prices in the face of falling import offers or are waiting to conclude import transactions after the approaching holidays, he said.
Market sources said that dealers in northern Indian markets, where the upcoming festival has much significance, are offering discounts in the range of $20-30/mt to liquidate stocks but are only able to conclude transactions for small volumes owing to sluggish demand conditions.