Prices in the local Indian hot rolled coil (HRC) market have remained stable during the past week at INR 46,500/mt ($641/mt) ex-works, even though transaction activity in the market was seen to be falling with buyers cautious about making bookings after prices were increased by domestic steel mills earlier in the month, traders said on Monday, September 17.
“With the manufacturing sector overall showing sluggish growth, it is only natural that HRC end-users have slowed down building up inventories and hence the fall in market activity ever since steel mills increased base prices this month,” a Mumbai-based trader said.
“The outlook is negative in view of rising oil prices and inflation and the central bank considering a hike in interest rates soon. These macro indicators are taking a toll on the sentiments of market participants,” the trader added.
Market sources said that at least two large steel mills concluded transactions for ex-India HRC to Vietnam in the range of $600-620/mt CFR on average but, in view of the fact that most steel mills have been operating at maximum capacity and that users are cautious about concluding fresh bookings, the upside in prices from current levels will be very limited despite overseas shipments.
$1 = INR 72.49