Local Indian trade-level hot rolled coil (HRC) prices have remained stable in the past week, finding support from a slight tightening of supplies from large mills even as industrial demand was reported to be sluggish and with buyers cautious in committing new bookings, SteelOrbis learned from trade and industry circles on Monday, April 21.
Sources said that HRC trade prices are unchanged at INR 51,500/mt ($606/mt) ex-Mumbai and also stable at INR 52,300/mt ($615/mt) ex-Chennai although some bookings in southern regional markets have been heard at the slightly higher level of INR 52,700/mt ($620/mt).
The sources said that industrial growth at 2.9 percent in February as per the latest government data, constituting a six-month low, is expected to be sustained in the first quarter of the current quarter, prompting a depressed demand forecast, and both traders and end-users have been adopting need-based restocking of raw material.
They said that prices have been finding support from the supply side with at least three large mills under maintenance shutdowns, but the supply-side dynamics are expected to change by early May once these mills get back into normal production.
“Prices are holding but the market participants’ mood ranges from cautious to depressed. There is no discernible trend and prices can go either way from this point. A lot has been heard and talked about the 12 percent safeguard duty, but no decision has been taken yet. This is weighing heavily on sentiments,” a Mumbai-based distributor said.
“The market remains under import pressure with another 80,000-83,000 mt of flat products expected to arrive at ports by end-April as per vessel arrival data. This is as per expectations and continues to offer headwind to local prices,” he added.
$1 = INR 85.00