Local Indian hot rolled coil (HRC) prices have showed a mixed trend with prices edging lower in major trading hubs with user industries adopting need-based bookings and avoiding risks of carrying higher inventories at the close of the fiscal year, while prices have been showing modest gains in other regions attributed to localized reasons, SteelOrbis learned from trade and industry circles on Monday, February 24.
Sources said that HRC trade prices are down by around INR 300/mt ($3/mt) to INR 48,400/mt ($557/mt) ex-Mumbai, though some limited deals have been heard at the lower price of INR 47,300/mt ($529/mt). According to the sources, deals at the lowest prices have been very few and limited to relatively higher volumes where distributors extended volume discounts for year-end stock liquidation. Meanwhile, trade HRC prices in southern regional markets around Chennai are reported at levels of around INR 49,700/mt ($572/mt) compared to INR 49,000-49,500/mt (564-570/mt), attributed to lower availability of material in local stockyards.
Several market participants said that the divergent price trends are also because of the absence of a consensus as to how the expected tightening of supplies from mills in the coming weeks would play out amid the weak demand outlook and the interplay of these factors on prices.
Industry sources said that at least three mills of Tata Steel Limited are scheduled to implement maintenance shutdowns for varying periods. This, coupled with the already announced similar shutdowns of the mills of JSW Steel, is expected to reduce mill-to-market supplies and offers support to the current price line.
According to trade circles, based on vessel arrival information, imports arrivals during February 17-28 are estimated at 64,000 mt, with another 70,000 mt estimated in the first week of March, which are seen to be on the lower side and exerting a salutary impact on local prices.
$1 = INR 86.90