Local Indian hot rolled coil (HRC) prices have declined marginally amid the prolonged demand depression among large industrial users and sustained import pressures, SteelOrbis has learned from trade and industry circles on Monday, February 26.
Sources said that HRC trade-level prices fell INR 200/mt ($2/mt) to INR 56,800/mt ($684/mt) ex-Mumbai and are down INR 100/mt ($1/mt) to INR 57,550/mt ($693/mt) ex-Chennai in the south amid continued reports of discounted sales being reported from western and northern regional markets in the range of INR54,000-55,000/mt ($651-663/mt).
According to sources, trade-level prices have also been under added pressures with distributors staying away from restocking to maintain liquidity as the end of the fiscal year approaches, while industrial users have only been active for need-based bookings.
Besides, trade circles have claimed that imports will continue to surge further as business activity gathers pace in China and more ex-China offers are submitted in the Indian market.
“The market is in a strong bearish phase and these conditions are expected to be prolonged. There are too many negatives including a demand depression, rising imports, year-end considerations and the impending national elections, all weighing in on fundamentals and sentiments,” a Mumbai-based distributor told SteelOrbis.
“The March base pricing strategy of mills is being awaited by the market to determine the next trend cycle. Our assessment is that neither a price increase or maintaining current base prices will impact sentiments and market conditions. With macroeconomic and demand indicators negative, pricing alone may not change the depressed trade conditions,” he added.
$1 = INR 83.00
