Local Indian hot rolled coil (HRC) prices have remained stable at around INR 39,500/mt ($633/mt) ex-works amid low transaction activity and confusing signals from producers, traders said.
According to two Mumbai-based traders, there is a lack of certainty in the market over the trend of prices from steel mills and most distributors have postponed the conclusion of any fresh bookings.
While Jindal Steel and Power Limited is reported to have marginally increased steel prices by an average of around INR 500/mt ($8/mt), other steel mills like Steel Authority of India (SAIL), JSW Steel and Essar have kept their prices unchanged owing to subdued demand, the traders said.
Without any short-term pricing trend emerging from producers, traders have preferred to wait and watch, as they are not sure they should conclude fresh bookings against the background of sustained low demand, the traders added.
Market sources said that Indian HRC export markets in Europe too have been facing a lull owing to the festive season ahead, and no significant transactions have been reported even though export offers have been lowered by $10-20/mt to the range of $530-540/mt FOB.
The sources said that most steel producers are expected to review their domestic and export pricing strategy in mid-January when more definitive domestic and overseas demand trends will emerge.