Prices in the local Indian hot rolled coil (HRC) market have remained unchanged over the past week at INR 38,000/mt ($584/mt) ex-works, since most market participants have stayed on the sidelines waiting for pricing signals from Indian steel mills for November deliveries, traders said on Monday, October 30.
“Base prices of local steel mills for November deliveries could go in either direction and hence most buyers have stayed away from fresh transaction as the end of the month approaches. Considering the inventory pile-up at steel mills, a section of the market is expecting a downward adjustment of base prices,” a Mumbai-based trader said.
“At the same time, local mills may refrain from making adjustments to maintain margins at a time of financial stress,” the trader added.
However, according to two other traders, Indian steel mills could bank on signals of a revival in exports to slow down inventory build-ups and avoid pressure to reduce domestic base prices. These traders said that after a lull in exports there are reports of at least two large steel mills concluding export transactions to the Southeast Asian market for HRC at prices ranging around $575-580/mt CFR.
$1 = INR 64.86