Local Indian hot rolled coil (HRC) trade prices have softened during the past week with a rapid increase in trading activity amid aggressive restocking by trade channels ahead of the festival holidays and prices becoming more viable, SteelOrbis learned from trade and industry circles on Monday, September 12.
Indian HRC trade prices are down INR 700/mt ($9/mt) to INR 55,200/mt ($693/mt) ex-Mumbai and down INR 500/mt ($6/mt) to INR 55,500/mt ($697/mt) ex-Chennai in the southern region.
According to sources, booking volumes have increased significantly as traders were restocking ahead of the festival holidays, anticipating that prices may have bottomed out in the current cycle and that mills are likely to reverse base price cuts when they announce October prices later this month.
“A number of mills are bringing back production after annual maintenance. But the resultant pressure on prices has been checked by the increase in trade channel activity and improvements seen in exports over the past week,” a Mumbai-based distributor said.
“This will give producers the option to increase base prices after the expected lull in market activity in early October due to the festival holidays. Current trade prices are very much near a bottom. Much will depend on the export front. Prices are rising across western geographies reacting to rising energy costs. Ex-India offers are becoming attractive for buyers. It remains to be seen how local mills seize the changing positive dynamics in overseas sales,” he said.
$1 = INR 79.60
