Prices in the local Indian hot rolled coil (HRC) market have edged down for the second consecutive week, decreasing by INR 400/mt to INR 45,300/mt ($661) ex-works, amid concerns over high inventories held by market participants and the softening of export offers, traders said on Monday, July 16.
“What started as a minor correction earlier in the month has gained momentum during the past week amidst concerns of rising inventories at both mills and dealers,” a Mumbai-based trader said.
“A section of the market is not ruling out a minor adjustment of base prices by steel mills next month after they maintained base prices unchanged for the current month, in view of rising inventories,” the trader added.
Market sources said that export offers too have softened during the week by around $10/mt to the range of $620-630/mt on FOB basis, and no large mills are reported to have concluded transactions at such levels. In fact, sources said that reports in the market indicated that at least one large mill withdrew from concluding a contract after submitting an export offer to Vietnam.
$1 = INR 68.67