Local Indian HRC prices remain unchanged for second consecutive week

Local Indian hot rolled coil (HRC) prices have remained unchanged for the second consecutive week at INR 41,500/mt ($644/mt) ex-works amid dull market activity and with no clear trend evident to market participants, traders said on Monday, April 24.
 
"No market participant is sure of which way the market is going. While local mills are maintaining higher price levels even though export shipments are easing off and there has been no positive shift in domestic demand, dealers and end-users prefer not to conclude any new deals," a Mumbai-based trader said.
 
"However, the short-term bias of local HRC prices is definitely downwards. Reports indicate that Chinese HRC export offers have moved down by at least $20/mt on FOB basis over the past two weeks and, with Indian steel mills unable to match such offers, they are pulling out of exports, leading to fears of more supplies entering the domestic market," the trader added.
 
At least two other traders said that there is a strong expectation that, after two weeks of stagnant market and price conditions, local HRC prices will take a dip, prompting buyers not to make any purchases right now.
 
However, the same two traders added that it is possible that, with India steel mills unlikely to reduce their base prices, downward pressure on prices could be triggered by discount offers from dealers.
 
$1 = INR 64.45