Prices in the local Indian hot rolled coil (HRC) market have remained unchanged during the past week at INR 38,500/mt ($597/mt) ex-works amid negligible trading activity in the market, traders said on Monday, June 26.
"There is no buying interest in the market amid too many uncertainties. There is no clear demand trend. There is no clarity on the impact of the reformed Goods and Service Tax (GST) which will kick in next week. The pricing strategy of domestic steel mills for July deliveries are also not clear," a Mumbai-based trader said.
"Trade channels are in a logjam in view of the impending GST. There is a lot of talk that impact of GST may last one or two quarters. Dealers are not stocking at all and many of them are still behind in upgrading their back-office to meet the next indirect tax compliance requirements," the trader added.
At least two other traders said that domestic mills may marginally lower their base prices as stock movement from mills to market slows down. However, lower price is not expected to revive sluggish conditions as situation is unveiling of high inventories with mills and shortage faced by end-users with market intermediaries disrupted, the traders added.
$1 = INR 64.50