Local Indian hot rolled coil (HRC) trade prices have remained stable amid uncertain market conditions and reports of mills continuing to push volumes at undisclosed discounts, with reference trade prices losing significance, SteelOrbis learned from trade and industry circles on Monday, December 18.
Sources said that HRC trade prices have remained unchanged at INR 58,300/mt ($699/mt) ex-Mumbai and are stable at INR 58,750/mt ($704/mt) ex-Chennai in the south. However, most mills have been pushing volumes at discounts which have not been disclosed, and hence official trade price stability does not fully reflect the emerging weakness in market conditions.
Citing trade-level information, the sources said that, even though no new import bookings were concluded over the past week, an estimated 235,000 mt of HRC arrived at various ports across the country, increasing supply-side pressures on prices and forcing local mills to resort to heavy discounting, though the percent of discounts offers has been kept under wraps by both buyers and sellers, claiming privileged trade information. In particular, this week ex-China HRC offers have been voiced at $605-610/mt CFR India, but, according to sources, no bids have been reported by Indian buyers so far.
“There is a lot of bargaining on price between buyers and producers, indicating various pressures on the market. Distributors are insisting on large discounts to conclude bookings as a number of alternatives are available for the buyers. Mills are competing against each other to push discounted sales,” a Mumbai-based trader told SteelOrbis.
“We don’t expect mills which have been restrained in hiking base prices in December to be able to hike prices in January either, despite the increasing cost of production,” he added.
$1 = INR 83.40
