Local Indian hot rolled coil (HRC) prices have remained unchanged during the past week at around INR 34,500/mt ($556/mt) ex-works, as stock liquidation pressures have eased, while volumes have been negligible and market sentiments depressed, traders said on Monday, March 23.
According to a Mumbai-based trader, dealers have taken a break from the stock liquidation seen since early this month, awaiting signals from local steel mills.
The trader said that reports indicate that steel mills are weighing up options of either reducing production or adjusting prices downwards to restrict oversupply in the market and increased import shipments of HRC. Hence, dealers are on a pause mode as regards pricing and are seeking to push volumes until steel mills announce their base pricing strategy in April, he added.
At the same time, transaction volumes have taken a nosedive during the past week due to the approach of the end of the financial year on March 31 and neither buyers nor traders are willing to conclude deals at a time when they are getting ready to close their accounts, market sources said.
However, local HRC prices have found support from reports that offers for ex-China HRC have increased by $10-15/mt during the past week to the range of about $420-425/mt CFR Mumbai, and, with the Indian rupee still weak at around INR 62.60 to a dollar, negligible import transactions have been reported, the sources added.