Local Indian hot rolled coil (HRC) trade prices have remained largely stable over the past week, with some gains seen in regions, while trade activity has showed signs of slowing down as large industrial users have been reducing fresh bookings, SteelOrbis learned from trade and industry circles on Monday, February 23.
Sources said that HRC trade prices are stable at INR 52,000/mt ($573/mt) ex-Mumbai but are up slightly by INR 300/mt ($3/mt) to INR 55,000/mt ($606/mt) ex-Chennai in the south. Following the fall in trading activity, demand and supply now seem to be more evenly balanced and large traders have mostly pulled back the premiums sought earlier for immediate deliveries.
According to market insiders, the anticipation of base price increases by mills has not materialized. This has been taken as an indication that the tightening of inventories at the producers’ end may be easing and the possible deferment of another round of base price increases has been prompted by concerns of a stronger resistance from buyers impacting overall flow of material across the supply chain.
“With demand and supply more evenly matched, the price stability seen over the past week is welcome for buyers. Price volatility is not conducive for most market participants,” a Mumbai-based distributor told SteelOrbis.
“There are some regional variations emerging in the market. Demand and consumption in the south remain strong but not so much in the northern region,” he added.
$1 = INR 90.72
