"There are too many uncertainties in the market, preventing fresh conclusions of deals by buyers," a Mumbai-based trader said.
"For one, buyers are receiving mixed signals on whether local steel mills will adjust prices in reaction to low demand and sluggish stock movements. Or they may keep their prices unchanged as the weakening Indian rupee has been offering some protection from import competition," he said.
"Ex-CIS import offers for HRC have rebounded by about $15/mt to $475/mt CFR Mumbai. This together with falling Indian rupee have kept importers out of the import market and resulted in uncertainties regarding whether local mills will lower their domestic prices," he added.
Market sources said that local prices are expected to move sideways during most of the current month until buyers have received clearer indications on local currency movements, import levels and the pricing strategy of local mills for the next three months of the current financial year ending March 31, 2015.
$1 = INR 63.43