Buyers remain cautious in local Indian HRC market

In the past week, local Indian hot rolled coil (HRC) prices have remained in the range of  INR 41,000-41,500/mt ($657-664/mt) ex-works, as buyers have remained cautious about concluding fresh bookings, while steel mills are reported to be considering a fresh increase in base prices next month, traders said on Tuesday, February 25.
 
According to a Mumbai-based trader, sentiment in the market is weak and distributors are not willing to carry large inventories at high base prices, while at the same time no discounts have been reported either from steel mills or traders.
 
The Mumbai-based trader went on to say that HRC prices are expected to move in a very narrow range as demand has continued to be tepid and mills are unlikely to take demand into account and adjust their prices accordingly in order to boost activity.
 
On the contrary, market sources said that several steel mills are already laying the ground to announce a price hike next month, the third since the beginning of the year, citing shortages and rising prices of iron ore.