Local Indian hot rolled coil (HRC) prices have continued their downward trend for the fourth consecutive week, decreasing by INR 500/mt week on week to INR 39,500/mt ($576/mt) ex-works amid the ongoing negative outlook for demand and sustained import pressures, traders said on Monday, July 8.
“The market mood has been negatively impacted by the disappointment that the national budget did not provide any hope for a government fiscal stimulus to manufacturing sector growth. Import pressures are also expected to be sustained as the government did not give any signal of immediate hikes in customs duties on imported steel,” a Mumbai-based trader said.
“Trading volumes, particularly fresh bookings by end-users, have remained at low levels with most local steel mills deciding to maintain high base prices for current month deliveries,” the trader added.
Sources said that there are reports that a section of market intermediaries have also been offering discounts ranging around INR 500/mt to liquidate their inventories, indicating that the possibility of a rebound in prices is being ruled out in the short term.
Having decided to maintain their base prices unchanged in the local market and facing a slowdown in stock movements, most large domestic steel mills are banking on pushing higher volumes overseas to control their rising inventories, the sources added.
$1 = INR 68.71