The local Indian hot rolled coil (HRC) market has declined for the third consecutive week, with prices moving down by INR 500/mt week on week to INR 39,500/mt ($612/mt) ex-works, amid weakened demand with very few buyers active in the market, traders said on Monday, May 22.
"Sentiment in the market has taken a hit due to the absence of any demand revival in manufacturing. The three consecutive weeks of weakening of HRC prices is a clear indication that the market is unable to absorb higher prices even though domestic mills are refusing to adjust their HRC offers, and so dealers are forced to cut their prices to keep pushing volumes, but without much success," a Mumbai-based trader said.
Market sources said that in some regions like the western Indian market dealers are being forced to offer discounts of about INR 500/mt even after cuts in prices in order to avoid inventory buildups and it is possible that discounting will spread to other markets in the coming week as no change in the demand scenario is expected by market intermediaries.
$1 = INR 64.59
