The local Indian hot rolled coil (HRC) market has showed mixed trends and lacked a clear direction in the past week, with prices weakening in some regions due to oversupply and limited restocking by major industrial buyers, SteelOrbis learned from trade and industry circles on Monday, December 1.
Sources said that, while HRC trade-level prices have lost INR 500/mt ($6/mt) to INR 46,000/mt ($515/mt) ex-Mumbai, they are stable at INR 48,100/mt ($538/mt) ex-Chennai in the south. While inventory pressures at both distributor and mill levels have been reported in western regional markets, industrial buyers have only been competing for small, need-based volumes as they await December base price indications from producers. They said that the market lacked positive drivers amid expectations that large mills could go in for a base price hike of around INR 1,000/mt ($12/mt) for December deliveries, which could risk a further fall in trade volumes.
“Prices are under dual pressures of soft demand and oversupply. Industry is lobbying hard for stiffer safeguard levies on imports. The government is said to be considering a fresh three-year safeguard duty of 11-12 percent, which can offer some support in the short term,” a Mumbai-based distributor said.
“However, import barriers may have a limited impact on the market and any possible upside can only come from an industry demand revival. But industries are very conservative in restocking raw materials, which will continue to weigh on market sentiments,” he added.
$1 = INR 89.34
