The rapid decline in local Indian hot rolled coil (HRC) trade prices seen over the previous several weeks has been put on pause by some fresh bookings by end-users, but negative sentiment persists in the market as reflected in trade channels desisting from rstocking and the overall slow movement of stocks, SteelOrbis learned from trade and industry circles on Monday, June 27.
Indian trade HRC prices have remained largely stable at INR 61,300/mt ($783/mt) ex-Mumbai and unchanged at INR 62,500/mt ($798/mt) ex-Chennai in the southern region.
According to a Mumbai-based distributor, trade channels are just not interested in confirming new bookings, to avoid carrying inventories, perceiving further downside risks in prices and awaiting new base pricing signals from mills for July.
However, the mills have maintained a more positive outlook. “The downward trend in price has run its course. Prices will now consolidate. There might not be a very big upside but again losses will not be as sharp as seen over the past few months. We do not see producers cutting base prices significantly going forward, as the market sees more stability,” an official at a private mill said.
Another official at a mill pointed out that the positive overseas sales achieved over the past week would help producers to reduce inventories and lower pressures to cut base prices “too much”, and at the same time current domestic prices have “cooled down to the extent that it can revive demand from end-users going forward”.
$1 = INR 78.30
