Prices in the local Indian hot rolled coil (HRC) market have remained stable during the past week at INR 38,500/mt ($589/mt) ex-works amid indications that domestic steel mills will keep their base prices unchanged for current month deliveries, traders said on Monday, October 9.
“There are strong indications in the market that Indian steel mills will maintain base prices unchanged and will not consider a price hike as previously expected in view of rising inventories at mills and dealers,” a Mumbai-based trader said. “But I feel market prices will come under renewed pressures in view of the all-round inventory buildup and the sluggish demand environment,” the trader added.
At least two other traders said that there have been reports during the past week of dealers in northern Indian markets offering marginal discounts of INR 200/mt ($3/mt). They said that the discounts on offer could get deeper and become widespread across more markets in the absence of any demand uptick.
Sources said that HRC export offers have continued to fall, losing around $15/mt to about $560/mt FOB, and large mills are pulling out of the export markets. This, the sources said, was expected to increase higher volumes flowing into the domestic market, putting renewed supply-side pressures on local HRC prices.
$1 = INR 65.38