Over the past week, the downslide of local Indian hot rolled coil (HRC) market has continued unabated, with prices decreasing by INR 1,000/mt week on week to INR 43,500/mt ($608/mt) amid increased inventories at domestic steel mills, a slowdown in off-take by end-users, and expectations of a second downward revision of base prices in the current month, traders said on Monday, December 17.
Market sources said that, with HRC prices declining by INR 3,200/mt over the past three weeks, neither dealers nor end-users are willing to conclude fresh deals, anticipating that prices will hit a bottom below $600/mt in the very short term.
“There is despondency in the market and no one is sure whether prices have bottomed out or if further losses are on the cards,” a Mumbai-based trader said.
“With inventories building up at steel mills, exports at a standstill, and few dealers and end-users willing to make bookings before prices stabilize, steel mills have no option but to lower base prices for the second time in December,” he added.
Some players in the market are expecting steel mills to lower base prices by another INR 1,000/mt ($14/mt) before the year-end.
$1 = INR 71.59