Downward pressures resurface in local Indian HRC market

Downward pressures have resurfaced in the local Indian hot rolled coil (HRC) market with prices losing INR 500/mt ($7.50/mt) during the past week to around INR 32,000/mt ($481/mt) ex-works amid market expectations that local mills will be forced to adjust their prices and a slight renewal of interest in imports, traders said on Monday, November 30.
 
"The price stability seen early in the month proved to be short-lived. A section of the market considers that local mills will be forced to adjust their base prices in view of falling volumes and possible inventory buildups at the mills," said a Mumbai-based trader.
 
"Imports which have been negligible in recent times have also seen some revival of interest, even though import offer prices have remained unchanged," the trader added.
 
Sources said that import offers have remained stable at $295-300/mt CFR Mumbai for ex-China HRC and at $315/mt CFR Mumbai for South Korean HRC, for late December and January shipments.
 
Although import transaction volumes have remained at low levels, importers have reportedly negotiated aggressively, reflecting a revival of interest, the sources added.
 
However, another section of the market still believes that ex-China HRC offers are unlikely to edge lower than current levels since reports indicate that several Chinese mills are reducing production volumes and so Indian importers expectations of lower offers may not materialize.