Local Indian hot rolled coil (HRC) prices have decreased by INR 200/mt ($3/mt) during the past week to INR 38,300/mt ($589/mt) ex-works due to the slowdown in buying by end users and festival holidays later this week, traders said on Monday, October 16.
“The mood in the manufacturing sector is very gloomy and HRC end users are not willing to stock up ahead of Diwali festival holidays, starting on Thursday, October 19” a Mumbai based trader said.
At least two sources said that although local steel mills have decided to keep base price unchanged for current month deliveries, they may have to adjust their prices next month, as current sluggish movement of stocks at both mill and dealer end is likely to persist.
They said that with HRC export offers are softening and no significant transactions in overseas markets have been reported by any of the large steel mills during the past week. So, Indian mills are likely to adjust domestic price to tackle inventory build up from lack of export shipments.
$1 = INR 64.92