In the Indian domestic hot rolled coil (HRC) market, demand remains weak and transaction activity is nearly at a standstill. Indian steel producers' domestic offers still stand at INR 34,500-35,000/mt ($766-777/mt) and anticipated price increases by producers have not materialized yet. The spot market maintains its strength thanks to inventories supplied months ago, with HRC spot prices in India standing at approximately INR 1,000/mt ($22/mt) below producers' prices. Although buyers are showing interest in both producers' offers and in spot offers, they have not yet started their bookings yet, preferring to wait instead.
While no large volume transactions have been heard so far from the domestic or foreign markets, with the common opinion suggesting that prices have already reached the bottom, buyers are still expected to gradually start their bookings soon.
Ex-China HRC offers to India have continued to trend at high levels. With Chinese offers remaining above buyers' price idea, this provides some relief for Indian producers from pressure from imported material. Currently, ex-China offers for boron-added SS400 HRC are standing at $720/mt FOB, while 1 mm CRC offers are at $800-810/mt FOB.
While some Indian market players predict that local trading activity will liven up in line with the anticipated price hike by producers, some think that Indian producers, free from pressure from imported materials, may increase their prices at any moment. In the meantime, end-users' reduced inventories, as well as the approaching monsoon season, may lead buyers to start their bookings.
$1 = INR 45.04