Local Indian hot rolled coil (HRC) market have continued to seek lower levels for the second consecutive week, with prices edging down by INR 200/mt week on week to INR 41,500/mt ($598/mt) ex-works as moribund trading conditions have persisted and as market intermediaries and end-users have been staying away from fresh bookings, traders said on Monday, May 6.
“There is no appetite to restock from either market intermediaries or end-users. Expectations that large steel mills would lower base prices to factor in low trading activity have also been belied,” a Mumbai-based trader said.
“Local prices are also facing pressures from sustained import bookings by large end-user industries with larger volumes being booked during the past week and prompting dealers to stay away from increasing their own inventories,” the trader added.
Market sources said that several traders in western Indian regional markets are reportedly offering discounts ranging at around INR 200/mt to liquidate existing high-priced stocks, but the sources are not able to confirm if these dealers are able to conclude transactions at the discounted offers.
$1 = INR 69.37