Local Indian HRC prices impacted by falling demand

Local Indian hot rolled coil (HRC) prices have moved down by INR 500/mt ($8/mt) in some regions during the past week under pressure from persistently sluggish demand, to around INR 39,500/mt ($644/mt) ex-works, traders said on Tuesday, November 4.
 
According to two Mumbai-based traders, the price corrections recorded in the northern Indian markets have been the sharpest, whereas HRC prices in the western and southern regions have remained at INR 40,000/mt ($652/mt) although transaction volumes were negligible in these regions too.
 
The traders said that there has been a sharp deterioration in demand and market sentiments have also worsened, with steel mills still reluctant to adjust base prices in line with falling trading volumes.
 
Market sources said that ex-China HRC offers have also softened during the week and, though traders have not concluded any significant transactions, softening import HRC prices have continued to put pressure on local HRC prices.
 
Chinese HRC offers have moved down $5/mt to the range of around $510-515/mt CFR Mumbai for December shipments, but importers' bids at $500/mt have also declined, the sources added.
 
$1 = INR 61.37