Local Indian hot rolled coil (HRC) have remained stable during the past week at INR 48,600/mt ($668/mt) ex-works after two consecutive weeks of losses, but the market outlook remains bearish with expectations that prices will remain under pressure from higher import volumes, traders said on Monday, November 12.
“Indian steel mills are reportedly seeing a rise in their inventories, partly attributable to higher inward shipments of imported HRC considering the sharp fall in import offer prices, and this is going to put local Indian prices under pressure in the short term,” a Mumbai-based trader said.
“Buyers among end-users and dealers are staying away from making fresh bookings, anticipating that a price correction will set in triggered by rising inventories, and restocking may wait until prices find a new bottom,” the trader added.
Market sources said that, while it is too early to anticipate any base price cuts by Indian steel mills for December deliveries, a sustained rise in inward shipments and a rise in mills’ inventories could force local steel mills to adjust base prices when the pricing committees of large steel mills start their meetings toward the end of the month.
$1 = INR 72.93