Over the past week, local Indian hot rolled coil (HRC) prices have resumed a downward trend, with prices moving down by INR 300/mt week on week to INR 41,200/mt ($593/mt) ex-works, coming under pressure from imports and expectations of base price adjustments by domestic steel mills next month, traders said on Monday, May 27.
“The downturn in prices has been largely expected as prices have struggled to remain stable over the past couple of weeks amid rapidly thinning trading activity,” a Mumbai-based trader said.
“International prices are softening and there has been a slight increase in volumes of imported HRC coming into the market. A section of the market, hence, is expecting that local steel mills will be forced to make some adjustments to base prices under pressure from imports,” the trader added.
However, two other traders have maintained a contrarian stance, citing that the new Indian government re-elected for a second term is already talking about measures to stimulate demand and expectations of an economic stimulus could prompt domestic steel mills to maintain base prices unchanged in anticipation of a revival in demand in the market.
$1 = INR 69.5