Indian local hot rolled coil (HRC) prices edged up marginally in anticipation of base price increase by mills but trading volumes continued to dip, SteelOrbis learned from trade and industry circles on Monday, December 26.
Indian HRC trade price was up INR 300/mt ($4/mt) at INR 53,700/mt ($649/mt) ex-Mumbai and gained INR 200/mt ($2/mt) at INR 53,200/mt ($643/mt) ex-Chennai in the south.
According to the sources, the market expected mills to increase base price in January by at least INR 1,000/mt ($12/mt), riding on back of improved overseas sales and achieving higher realizations, but risked fall in stock movement in the local market from slower industrial activity.
“We don’t expect much change in the current slowdown in market conditions over the next quarter. There are some availability issues in some regions as producers are heard to be increasing export allocations. This is limiting a sharp fall in prices from slowdown in demand from industrial sector,” a Mumbai based distributor said.
“Trade channels are reporting sufficient stocks and some sellers are heard to be offering discounts ranging around $500/mt ($6/mt) to clear inventories at the year end. Overall, we expect prices to remain rangebound in the short term with negative outlook,” he said.
$1= INR 82.80