Local Indian hot rolled coil (HRC) trade prices have remained stable amid the improved post-holiday revival of trading activity even as the market awaits November pricing signals from mills, SteelOrbis learned from trade and industry circles on Monday, October 31.
Sources said that trade HRC prices have been stable at INR 56,300/mt ($682/mt) ex-Mumbai and unchanged at INR 57,000/mt ($691/mt) ex-Chennai in the south.
They said that trade channels have increased buying activity amid the resumption of normal business activity after the festival holidays, but large industrial buyers have preferred to await new base price announcements by mills for November before confirming bookings.
“There is lack of unanimity in the market over the November price forecast. A section of the market expects a moderate increase in base prices by INR 1,000/mt ($12/mt) as mills will seek to improve margins after posting weak second quarter results. However, a section of market participants maintains that demand is weakening and higher prices will not be absorbed in the market and this could trigger a further price correction amid resistance from buyers,” a Mumbai-based distributor said.
“Most mills are facing severe challenges in pushing sales overseas and lower export allocations are expected to increase supply-side pressures on local prices. Can mills afford to risk pushing higher-volume domestic sales by increasing prices? Market participants are waiting and watching,” he said.
However, striking an optimistic note, an official at a private integrated mills said, “Prices have fallen about 40 percent since April and have reached a bottom. Globally, there has been a production cut of around 69 million mt. Indian steel consumption in 2022-23 is expected to be 9 million mt higher at 115 million mt compared to the previous year. These elements will ensure better prices in the second half of the current year.”
$1 = INR 82.50