The Indian flat steel market is still sluggish. While flat steel demand is still tepid in the country, most players foresee the Indian flat steel market will continue as it is for a while. Indian producers' most recent price hikes have remained on paper and they have failed in accelerating market activity. Currently, Indian producers' domestic hot rolled coil (HRC) offers at INR 34,500-36,000/mt ($769-803/mt) are still above buyers' price idea. In the meantime, while Indian steelmakers' cold rolled coil (CRC) offers are at INR 39,000-40,000/mt ($870-892/mt), CRC transactions are also slow, in line with the market situation for HRC.
HRC offers given from China have contributed to the failure of steelmakers' attempt to accelerate market activity by means of price increases. Chinese offers for SS400 3-12 mm HRC at $690-700/mt FOB last week have increased the pressure on Indian domestic mills and has made it difficult for these mills to receive orders. The price softening seen in Chinese offers may lead Indian mills to readjust their prices. Thus, the short-term expectations are for a price softening in the domestic market.
Indian HRC export offers still stand at $720-730/mt FOB. However, given that Chinese HRC offers remain below Indian offers, it seems difficult for Indian flat steel producers to find acceptance for their offers in the European markets. After all, when freight rates are taken into account, buyers are not inclined to book Indian material. Some price corrections are expected in Indian offers, which are found to be on the high side both in the domestic and export markets.