The local Indian hot rolled coil (HRC) market has showed divergent trends with trade prices gaining ground amid expected base price increases by mills, but trade channels have continued to push discounted sales amid reports of fresh import bookings and sluggish demand from medium and small-scale user industries, SteelOrbis learned from trade and industry circles on Monday, June 3.
Sources said that trade prices are up INR 1,000/mt ($12/mt) to INR 55,400/mt ($664/mt) ex-Mumbai and up INR 500/mt ($6/mt) to INR 55,800/mt ($669/mt) ex-Chennai in the south. However, several in trade circles have said that discounted sales have been reported from the southern and western regions at around INR 54,500/mt ($653/mt) indicating surplus material in trade channels and the expected rise in import pressures.
They said that, according to market reports, an estimated 85,000 mt at least of ex-Vietnam HRC has been booked over the past weeks for July delivery at $592-598/mt CFR and estimated 60,000 mt of bookings have been concluded for ex-Japan HRC at average prices ranging at $592-600/mt CFR. Besides, the current offers for ex-China HRC have been estimated at around $570/mt CFR, excluding 7.5 percent duty, following around 40,000-50,000 mt booked earlier at $560-565/mt CFR, excluding duty, which will arrive in June. “We expect another 40,000-50,000 mt will also arrive from China in July,” a market insider said. At the same time, according to sources, following the renewal of the BIS certificate by Vietnam’s Formosa Ha Tinh Steel, South Korean steelmaker Hyundai Steel also recently renewed it BIS certificate for HRC until May 2025.
Market circles maintain that, despite expectations that some mills will offer support amid sluggish trade conditions and the slowdown in stock movement, producers are more likely to actually increase base prices for June deliveries. Specifically, a section of the market expects such a price increase to be around INR 1,500/mt ($18/mt).
“Prices are showing mixed signals. The official trade price is moving up as mills are expected to continue to push it up. But, actually, trades are mostly at a discount owing to the rise in trade inventory levels and sluggish demand from small and medium-scale users,” a Mumbai-based distributor told SteelOrbis, adding, “The pressure on prices seems to increase with the rising import bookings reported in the market.”
$1 = INR 83.40