Local Indian hot rolled coil (HRC) prices have softened over the past week amid increased supplies from mills and buyers retreating ahead of another round of holidays next week against the backdrop of dull trading conditions, SteelOrbis learned from trade and industry circles on Monday, October 17.
Indian HRC trade prices are down INR 800/mt ($10/mt) to INR 57,000/mt ($693/mt) ex-Mumbai and have decreased by INR 500/mt ($6/mt) to INR 58,000/mt ($705/mt) ex-Chennai in the south.
However, most trade circles have maintained that downside risks remain low as mills are already reported to be assessing moves to go in for second base price increases this month, citing input costs rise. The market expectations are for such a hike to be around INR 1,500/mt ($18/mt).
“Trade prices are softening partly because mills are pushing higher volumes for local sales, this, after reducing export allocations and the rise in output levels on the completion of maintenance of plants,” a Mumbai-based distributor said.
“The holidays next week for the Festival of Lights are approaching and trade channels are unwilling to commit restocking trades as overall business activity is already falling. Buyers prefer to await clarity on a new price trend post-holiday,” he said.
$1 = INR 82.30
