Over the past week, prices in the local Indian hot rolled coil (HRC) market have remained stable for the second consecutive week at INR 48,600/mt ($678/mt) ex-works, amid weak trading sentiments, rising inventory at steel mill end and import competition, traders said on Monday, November 19.
“Dealers are postponing fresh bookings for local HRC anticipating a price correction to set in face of higher inward shipment of imported material. The market is expecting local steel mills to adjust base price in view of their higher than normal inventories,” a Mumbai based trader said.
“The steady appreciation of the rupee above the INR 72 a dollar mark and across board softening of imported flat steel products will put pressures on local HRC prices in the next few weeks and hence market participants stayed on the sidelines in the local market,” he added.
Two other traders said that possibility of local steel mills lowering base price by INR 500/mt for December deliveries could not be ruled out considering too much material available with every market segment.
$1 = INR 71.63