Local Indian hot rolled coil (HRC) prices have shown a mixed trend over the past week, with declines in some regions and range-bound levels in others, amid a market lacking direction and with industrial buyers largely absent, SteelOrbis learned from trade and industry circles on Monday, December 8.
Sources said that ex-India HRC trade-level prices are down INR 500/mt ($6/mt) to INR 45,500/mt ($505/mt) ex-Mumbai and are stable at INR 48,100/mt ($534/mt) ex-Chennai in the south.
Notably, according to sources, market intermediaries in some regions have reported higher inventories and a lack of buying interest from medium-scale user industries, which have been seeking extended credit terms unfavorable to sellers.
At the same time, unclear base price indications from large producing mills have been keeping buyers from making any immediate commitments. A section of the market maintained that, without any pricing signals, it is considered that producers will keep base prices unchanged for December, a disappointment for market participants who were expecting some support from mills to boost trade activity.
“Trade volumes are very low. Even with trade prices almost close to a five-year low, buyers are still extremely cautious in bookings, apart from extreme need-based purchases,” a Mumbai-based trader told SteelOrbis.
“We expect trade prices to remain range-bound at best with year-end considerations kicking in,” he added.
$1 = INR 89.89
