Local Indian hot rolled coil (HRC) trade prices have continued on a downward trend, with prices falling in reaction to lower sales at both distributors and mills and amid sustained import pressures, although inward shipments have been showing a slight declining trend, SteelOrbis learned from trade and industry circles on Monday, November 25.
Sources said that HRC trade prices are down around INR 500/mt ($6/mt) to the range of INR 48,700-49,600/mt ($577-588/mt) ex-Mumbai and are also down INR 500/mt ($6/mt) to INR 50,500/mt ($598/mt) ex-Chennai in the south. Furthermore, even lower prices have also been reported in the market at around INR 48,000/mt ($567/mt) and even slightly lower levels during the past few days.
The sources said that both distributors and mills have been reporting higher-than-average inventories and hence prices are under strong supply-side pressures, and producers and market intermediaries are both aggressive in pushing volumes in the market.
Based on data regarding vessel arrivals, trade circles estimate total imports in November to be around 424,000 mt, lower than 687,000 mt in October, but pressures on local prices are still significant considering the steady fall in demand in the meantime.
Offers for import HRC in India, mainly those coming from China, have been voiced at around $485-495/mt CFR for December shipment, according to sources.
“The sustained weakness of demand and prices is beginning to take a toll on the cash flows of producers as well as distributors, as they need to keep pushing volumes in the market at lower prices to check inventory rises. It is a very complicated and challenging situation across the industry,” a Mumbai-based distributor told SteelOrbis.
“The pessimistic mood is being aggravated each day in the absence of any definitive announcement from the government on measures to check imports. It will take a long time to restore confidence in the market going forward,” he added.
$1 = INR 84.40