Local Indian HRC prices stable as negative macroeconomic indicators mount

Monday, 02 December 2019 17:18:02 (GMT+3)   |   Kolkata
       

Although local Indian hot rolled coil (HRC) prices had been expected to increase by INR 500-700/mt ($7-10/mt) for December delivery, they have remained stable during the past week at INR 34,750/mt ($485/mt) ex-works as the outlook has worsened in view of rising negative macroeconomic indicators, SteelOrbis learned on Monday December 2.

Last week, the government announced a gross domestic product (GDP) growth for the July-September quarter this year of 4.5 percent, the worst quarterly performance of the economy in the last six years. The sharpness of the decline in the economy can be gauged from the fact that it grew eight percent during the corresponding quarter of the previous year.

The deep-rooted downturn of the economy comes on the back of the Index of Industrial Production (IIP), a measure of factory output, declining for the second consecutive month in September by 4.3 percent, to the lowest of the last eight years.

“The HRC price stability seen over the past fortnight is elusive. Neither producers nor consumers can ignore the deep depression in the economy and the sectoral demand depression. Steel producers which were possibly considering a modest hike in base price seeing stability over the past two weeks will have to take into consideration new macro-data and either maintain base prices or even adjust them lower,” a Mumbai-based trader said.

“Current local market conditions indicate that most large domestic steel mills will have to renew their export thrust to keep pushing volumes into the market and check inventory-carrying costs,” he added.

$1 = INR 71.60 


Similar articles

Flat steel prices in local Taiwanese market - week 13, 2024

28 Mar | Flats and Slab

US sheet prices tick up modestly ahead of Easter weekend

28 Mar | Flats and Slab

European HRC prices keep falling, demand still shows signs of fatigue

28 Mar | Flats and Slab

Vietnam’s Hoa Phat and Formosa seek AD investigation on Chinese HRC

28 Mar | Steel News

Major steel and raw material futures prices in China - March 28, 2024

28 Mar | Longs and Billet

UAE’s HRC market still sluggish, offers from India fall slightly

27 Mar | Flats and Slab

Import HRC prices in Vietnam retreat again due to slump in China

27 Mar | Flats and Slab

Vietnam’s Hoa Phat produces nine millionth mt of HRC

27 Mar | Steel News

Major steel and raw material futures prices in China - March 27, 2024

27 Mar | Longs and Billet

HRC consumption in Mexico up 30.6 percent in January

26 Mar | Steel News