Following previous price increases, the local Indian hot rolled coil (HRC) market has started showing signs of running out of steam during the past week, with prices edging down by INR 500/mt ($7/mt) week on week to INR 44,500/mt ($654/mt) ex-works as fresh bookings have dipped sharply and as dealers have concerns regarding stock build-ups, traders said on Monday, January 23.
“The rapid rise in local HRC prices has begun to show signs of exerting a strain on market sentiments,” a Mumbai-based trader said.
“The sustained rise in prices over the last two months has triggered a slowdown in off-take by end-users. This in turn has raised concerns of traders regarding stock build-ups at both steel mills and traders and regarding resultant price pressures,” the trader added.
Some other traders said that buyers are making inquiries but are either not converting them into bookings or are reducing transaction volumes, with most of them complaining of high prices and of the inability to pass on higher prices to end-users.