Local Indian hot rolled coil (HRC) prices have remained largely stable over the past week although showing slight variations in trade prices in a few regional markets, interpreted as indications of market resistance to recent base price hikes announced by producers, SteelOrbis learned from trade and industry circles on Monday, February 17.
Sources said that HRC trade prices are stable at INR 48,700/mt ($563/mt) ex-Mumbai, but some deals have been heard in the western regional market at a lower discounted price of around INR 47,500/mt ($549/mt) compared to the level of INR 48,700/mt ($563/mt) a week ago, in the wake of mills hiking base prices. However, HRC trade prices have moved up slightly in the south to INR 49,000-49,500/mt ($564-572/mt) ex-Chennai, versus INR 49,000/mt ($564/mt) last week, amid reports of a slowdown in stock movements from mills to distributions channels in the south.
According to the sources, there has been no definite direction in the market which has been under conflicting pulls. On the one side, local buyers have been showing signs of refraining from bookings following base price hikes by mills. But, on the other supply side, prices have been supported by a slight tightening of dispatches from mills in the western region and the almost stable volume arrival schedule of imports at ports.
The sources citing information on ship arrivals said that an estimated 180,000 mt of imported materials had landed at ports in February, almost the same as during the corresponding weeks of last month. They said that importers have been cautious in concluding deals amid government initiatives to impose a safeguard levy and that this was offsetting some of the impact of weak domestic demand on trade prices.
“Supply-side dynamics both from the slight slowdown in dispatches from mills to trade channels and stable imports are offsetting the weak demand from user sectors somewhat. We expect prices to be range-bound. Discount sales will not become widespread and there will be stray deals only from small and medium-scale distributors for year-end considerations,” a Mumbai-based distributor told SteelOrbis.
$1 = INR 86.50