Over the past week, downward pressures have continued to be observed in the local Indian hot rolled coil (HRC) market and prices have decreased by INR 700/mt week on week to INR 46,000/mt ($654/mt) ex-works, amid the continued rise in import volumes and as some local steel mills have begun to lower base prices for current-month deliveries, traders said on Monday, December 3.
Market sources said that several large Indian steel mills have started the process of lowering HRC base prices by INR 700-1,000/mt and more mills are expected to announce their new base prices over the course of the next few days
“Indian steel mills have no option but to lower base prices in the face of steadily rising import volumes and their own increases in inventories,” a Mumbai based trader said.
“The sharp weakening of HRC import offers over the past weeks have made imported HRC more cost-effective for end-users, and dealers in reaction have sharply reduced their fresh bookings from local steel mills,” the trader added.
According to two other traders, the disappearance of the usual premium on ex-Japan and ex-South Korea HRC has also contributed to the rise in inward shipments by commercial traders and end-users, further aggravating pricing pressures on Indian steel mills.
$1 = INR 70.36