Local Indian HRC prices edge down amid concerns over industrial slowdown

Monday, 14 January 2019 14:05:01 (GMT+3)   |   Kolkata

Prices in the local Indian hot rolled coil (HRC) market have decreased by INR 200/mt week on week to INR 41,800/mt ($597/mt) ex-works, while market activity has fallen to negligible levels amidst concerns regarding a slowdown in industrial activity, traders said on Monday, January 14.

“Market conditions are in doldrums. Domestic steel mills are unwilling to adjust offers in response to the slowdown in off-take and rising inventories as they do not was to sacrifice margins as the current financial year draws to a close,” a Mumbai-based trader said.

“At the same time, end-users have no appetite to restock aggressively in view of the slowdown in the manufacturing sector,” the trader added.

Government data released last week showed industrial activity in Indian in November at the lowest in level in the past 17 months and pessimism over industrial growth has triggered huge caution among manufacturers as regards fresh bookings of raw materials.

Market intermediaries have also been largely inactive during the past week and bookings for fresh deliveries have remained virtually absent, the sources added.

$1 = INR 70.78

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