Prices in the local Indian hot rolled coil (HRC) market have continued to weaken for the second consecutive week, decreasing by INR 300/mt week on week to INR 38,000/mt ($585/mt) ex-works, with reports that steel mills have commenced offering significant discounts, traders said on Monday, October 22.
“Indian steel mills are offering discounts in the range of INR 1,000-1,500/mt, reflecting rising inventories, as HRC export opportunities seem to be drying up,” a Mumbai-based trader said.
“But, despite the sizable discounts, dealers are staying away from making fresh bookings not anticipating any reversal of the weakness of end-user demand. Also, business activity is yet to get fully underway after the festival holidays last week,” the trader added.
At least two other traders said that India steel mills are expected to reduce base prices next month, but there are divergent expectations in the market regarding whether discounts will be withdrawn.
$1 = INR 65.01