Local Indian HRC prices decline amid pessimistic manufacturing growth outlook

Monday, 17 June 2019 17:17:23 (GMT+3)   |   Kolkata
       

Local Indian hot rolled coil (HRC) prices have moved down by INR 400/mt week on week to INR 40,800/mt ($585/mt) ex-works due to a slowdown in fresh bookings amid rising pessimism over manufacturing sector growth prospects, traders said on Monday, June 6.

“There is serious concern over India’s short- and medium-term growth. The market is also discounting the possibility of the government offering any fiscal stimulus to sagging growth in the national budget to be placed before parliament next month,” a Mumbai-based trader said.

“Local steel mills are refusing to adjust base prices to factor in the slowdown in stock movements as input costs are rising and mills do not want to sacrifice margins by lowering prices. But end-users are lowering fresh bookings as sales across the manufacturing sector are becoming more sluggish,” the trader added.

However, a section of the market feels that local steel mills are maintaining a firm stance on base prices anticipating that the government will adjust antidumping duties on imported HRC, which would offer stronger protection and support for local prices.

An increase in import duty in the forthcoming national budget is also not being ruled out by local steel mills and hence they are maintaining their higher price levels, the sources said.

$1 = INR 69.8


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