Local Indian hot rolled coil (HRC) prices have continued to remain under pressure for the third consecutive week, decreasing by INR 200/mt ($3/mt) week on week to INR 32,500/mt ($492/mt) ex-works, due to the significant slowdown in market activity in reaction to local mills maintaining prices unchanged in the current month, traders said on Monday, November 16.
"Almost all local steel mills have decided to maintain their base prices unchanged despite the slowdown in activity. The market reaction and downward pressures have been expected as few market participants are willing to increase fresh bookings even after the festival period," said a Mumbai-based trader.
"The ongoing downward pressure is purely from the slackening of local demand. Import offers have remained stable and no import transaction has been reported in the market either," the trader said.
Sources said that ex-China HRC offers have remained stable during the past week at around $300/mt CFR Mumbai for December shipments, but there are few takers, with the Indian currency consolidating at levels weaker than INR 66 to the US dollar.