Local Indian hot rolled coil (HRC) prices have continued to remain under downward pressure for the second consecutive week, edging down by INR 100/mt ($1.5/mt) over the past week to around INR 33,400/mt ($514/mt) ex-works as buyers have avoided concluding fresh bookings as they consider that current levels are unsustainable, traders said on Monday, October 26.
"The market does not expect current levels to hold. But at the same time the corrections seen might be excessive given import protection and the slowdown in import transactions," a Mumbai-based trader said.
"Most buyers are restricting themselves to small transaction volumes in the absence of any improvement in demand. Local steel mills are expected to maintain their base prices on the strength of their pricing power stemming from low imports and this is leading to dull market activity," the trader added.
Market sources said that, though no discounts are offered currently in the market, dealers will be forced to consider discounts of at least INR 200/mt ($3/mt) after the current festival season in order to manage their inventories.
$1 = INR 64.94