Indian HRC prices under renewed pressures

Indian hot rolled coil (HRC) prices have been under renewed pressures during the week amid market disappointment as integrated producers have not announced expected price cuts and as Chinese HRC offers have become more aggressive, traders said today, September 7.
 
This week, a sharp fall has been observed in buying activity for domestic HRC, causing some western Indian steel mills to apply some reductions up to $40/mt, with their HRC offers declining to INR 34,000/mt ($612/mt) ex-works, compared to INR 36,250/mt ($652/mt) ex-works last week, the traders said.
 
"Indian HRC buyers have postponed their bookings, confused over aggressive Chinese offers," a Mumbai-based trader said.
 
"Some traders and buyers have concluded some ex-China HRC bookings at $520/mt FOB.  Moreover, some Chinese offers below $500/mt FOB have been reported at Mumbai, but these have not been confirmed. But just anticipation of HRC availability at below the $500/mt mark prompted traders and actual users to postpone bookings till at least next week," the trader added.
 
Last week, the market was expecting integrated steel mills to announce price cuts following their usual pricing committee meetings in the first week of the month, but official HRC prices have been kept unchanged, at least till now, according to a Kolkata trader.
 
Mills without captive iron ore mines have sought government intervention on the issue of high domestic prices of raw materials and have not been in a position to cut prices amid the increased squeeze of their margins from input cost increases, he added.