After the previous week's increase, Indian domestic hot rolled coil (
HRC) prices have remained stable at around INR 37,500/mt ($628/mt) ex-works during the past week in a market of low activity, traders said on Tuesday, June 25.
Market sources said that stray reports have been received from southern and eastern Indian markets of traders offering marginal discounts of INR 500/mt ($8/mt) to push volumes, since the demand forecast continues to be bearish and there is a lack of confidence in the manufacturing sectors and among downstream users of local
HRC.
"I do not see strong movements in domestic
HRC prices during the next few quarters," said an official in the marketing department of state-owned Indian steelmaker Steel Authority of
India Limited (
SAIL).
"Current domestic prices will be supported by weak currency and low imports on the one hand, but on the other weak growth in the manufacturing sector will continue to put pressure on prices and hence sharp price movements may be ruled out," the official said.
"Under such conditions, I do not see domestic price variations of more than $10-12/mt over the next two quarters," he added.