Local Indian hot rolled coil (HRC) trade prices have remained stable and, even though trade activity has continued to be sluggish, some medium-sized mills have been implementing maintenance shutdown, limiting supplies in the market and creating downside risks for prices, SteelOrbis learned from trade and industry circles on Monday, July 17.
Sources said that HRC trade prices have remained unchanged at INR 55,300/mt ($669/mt) ex-Mumbai and have been stable at INR 54,100/mt ($655/mt) ex-Chennai in the south.
A section of the market said that modest restocking by trade channels has been heard amid a lot of chatter that large integrated mills could go in for a base price increase before the end of the current month, taking advantage of the slight tightening of supplies. “Market sentiments are very mixed. Some believe buyers will restart procurement over the next few weeks, while others said that trade will remain at low levels and neither trade volumes nor prices would improve during the current monsoon season,” a Mumbai-based distributor said.
“There is some new optimism among mills after export trade volumes and price realizations were reported to have increased, and this would offer producers a window to increase local price too,” he added.
According to a steel sector analyst with a Mumbai-based financial advisory firm, the output of large mills in June was down five percent over May and this has to some extent checked the sharp losses in price levels despite falling trade activity. He also said that, with more mills taking maintenance shut-downs until August, the resultant tightening of supplies will support the market and also ensure a drawdown on mills’ inventories.
$1 = INR 82.60