Local Indian hot rolled coil (HRC) trade prices have continued to show a mixed trend amid moderate trade activity amid restrained need-based buying and market participants maintaining a neutral outlook.
Sources said that HRC trade prices are stable at INR 45,500/mt ($502/mt) ex-Mumbai, but have slipped by INR 500/mt ($6/mt) to INR 47,600/mt ($526/mt) ex-Chennai in the south.
According to the sources, despite moderate trade activity, market participants have adopted a slightly negative outlook based on the fact the mills decided to maintain December base prices unchanged. The lack of market support from producers caused disappointment in the market.
“The producers’ decision to roll-over December prices give out two signals. Firstly, that the market is not in a position to absorb any price increase. Secondly, that producers are carrying above-normal inventories. Both factors are bearish. Trade-level prices, despite showing some stability sporadically, are still very close to a five-year low,” a Mumbai-based distributor said.
“There is a lot of talk that local mills may be considering lowering output as raw material prices are increasing, but prices do have not headroom so that these increases can be passed on to consumers. There is a fundamental weakness of demand that is the problem,” he added.
$1 = INR 90.53
