Forces of correction have gained momentum in the local Indian hot rolled coil (HRC) market, with prices moving down by INR 500-1,000/mt ($8-16/mt) during the past week to around INR 37,000/mt ($598/mt) ex-works reflecting sagging demand and low transaction volumes, traders said on Tuesday, November 9.
According to a Mumbai-based trader, the downward correction has been the sharpest in northern Indian markets, where HRC prices have lost INR 1,000/mt ($16/mt) in reaction to the high level of stocks at most dealers and almost negligible new bookings.
The trader said that the inherent weakness in demand and negative outlook have been reflected in the fact that local HRC prices have lost between four and six percent over the last two months in every region of the country as users have not been interested in booking any significant volumes while local steel mills kept their base prices unchanged.
Market sources said that there has been a flood of ex-CIS offers for HRC which have been reduced by $20-25/mt to around $495-500/mt to push volumes into the local Indian market, but buyers are nervous with regard to persistent falling demand and so these offers have been refused and no significant import transactions have been reported in the market.