Local Indian hot rolled coil (HRC) prices have edged down by a marginal INR 100/mt week on week to INR 41,700/mt ($597/mt) ex-work amid inactive market conditions, traders said on Monday, April 29.
“Local HRC prices are drifting from lack of any direction. Both buyers and sellers are waiting for the formation of the new government in New Delhi and expect that the next government will offer some stimulus to reverse the sluggish manufacturing situation. Until then, trading activity in the market can be expected to remain at a low ebb,” a Mumbai-based trader said.
“However, the downside risk to prices will be limited by the recent revival in export shipments of HRC, particularly to Southeast Asian markets. If shipments of higher volumes by commercial exporters and large steel mills can be sustained, this will prevent local prices from recording a sharper downturn,” the trader added.
According to at least two other traders, there are expectations in the market that large steel mills will cut their base prices by around INR 500/mt in May and this has also prompted a number of market intermediaries to postpone fresh bookings, thereby contributing to the low market activity during the past week.
$1 = INR 69.84