Local Indian hot rolled coil (HRC) prices have come under pressure during the past week, with prices edging down by INR 300/mt ($4/mt) in the given period to INR 34,700/mt ($518/mt) ex-works, amid slacker booking activity by buyers and reports of a large inventory build-up, traders said on Monday, March 14.
“The price correction was expected as the rises seen early in the month were very sharp. Most dealers have built up large stocks and have been taking a pause from purchases as upward movement from current prices levels will be slower than in previous weeks,” a Mumbai-based trader said.
“Also, the price hike expected by local steel mills later this week has already been factored into current dealer prices and the market will go through a consolidation phase now,” he added.
However, other market players said that the current dip is temporary and that the pause in market activity will be temporary. These market players said that every price increase is being absorbed as import transactions continue to be nonexistent and as local steel mills have been aggressively pushing volumes into the market.