Pressures emerged on local Indian hot rolled coil (HRC) market with prices losing INR 500/mt week on week to INR 47,000/mt ($640/mt), on combination of slight uptick in import competition and limited bookings, traders said on Monday, October 29.
“Dealers are reducing their bookings due to the slowdown in their existing stock movements. Combined with this, there has been a rise in import contracts during the past week and although much of the volume contracted were by either end-users of large domestic steel mills, it put pressure on local prices,” a Mumbai-based trader said.
According to market sources, Indian importers concluded an ex-Japan deal for a total of 20,000 mt last Friday. The fact that import purchases were being contracted after several months put fresh pressure on domestic HRC prices which were stagnating for two weeks now.
Market sources state that with imports on a turnaround, market is speculating whether this will rein in local mills from going in for another hike in their base prices next month. Due to the uncertainties regarding prices, local traders are refraining from making fresh bookings.
$1 = INR 73.41