The downward trend of the local Indian hot rolled coil (HCR) market has continued for the second consecutive week with prices edging down INR 300/mt week on week to INR 40,500/mt ($583/mt) ex-works, amid lower local trades and sustained import competition, traders said on Monday, June 24.
“Local prices are under pressure from sustained strong imports ahead of the possible higher tariff barriers being considered by the government,” a Mumbai-based trader said.
“With local steel mills reluctant to make any adjustments to base prices, the appetite for local material is very low and end-users are making import bookings even for relatively small volume requirements, leading to the continued fall in trading activity in the local market. Even traders are staying away from making fresh bookings in order to limit their inventories,” the trader added.
In the short term, there might be some upside to HRC prices if the government goes ahead in announcing higher tariffs during the national budget to be placed before parliament early next month, but in the medium term the sustainability of local HRC prices will depend much on how the government tackles the slowdown in overall manufacturing sector growth, two other traders said.
$1 = INR 69.52