Prices in the local Indian hot rolled coil (HRC) market have remained stable during the past week at INR 39,000/mt ($600/mt) ex-works, with little material change in market conditions, traders said on Monday, November 20.
“Prices are holding up even as transactions volumes continue to remain low. Dealers are cautious about increasing their inventories in view of dull demand conditions, but prices are still able to sustain current levels as domestic steel mills are expected to maintain base prices stable through the coming months,” a Mumbai-based trader said. “With ex-China HRC export offers showing signs of retreating, the market is expecting this to dampen export sentiment among local steel mills. But I do not think that this will have a big impact on local HRC prices,” the trader added.
But at least two other traders said that local Indian HRC prices are critically poised and could move in either direction as end-users are not inclined to make large bookings against the backdrop of negative sentiment over the fall in India's manufacturing growth index.
The traders said that the market is keeping a close watch on the price of coking coal import cargoes which is showing signs of firming up and this could be cited by Indian steel mills as a reason to hike November base prices, but they added that this has not led to any rush to make new bookings at current prices for now.
$1 = INR 65.09