Local Indian hot rolled coil (HRC) trade prices have remained stable amid sluggish trade conditions and weak demand, with distributors able to confirm even small-volume bookings only after offering extended credit facilities, indicating growing pressures to liquidate inventories, SteelOrbis learned from trade and industry circles on Monday, December 23.
Sources said that HRC trade prices are reported at the unchanged level of INR 48,800/mt ($575/mt) ex-Mumbai and also stable at INR 50,300/m ($593/mt) ex-Chennai in the south.
At the same time, according to sources, some distributors in trading hubs were heard to be continuing to confirm bookings at INR 47,000/mt ($555/mt) net of discounts.
With extremely weak demand and buyers unwilling to build inventories, most sellers including distributors and mills have been confirming bookings with extended credits, trying to liquidate their stocks.
“There are virtually no positive drivers in the market at present. Imports continue to put pressure while demand continues to weaken amid overall manufacturing slowdowns. Every market participant is facing liquidity challenges as stock movement slows down at every stage of the supply chain,” a Mumbai-based distributor told SteelOrbis.
“There is a lot of talk at government level on providing support including tariffs to check imports. But we have not seen any definitive action on this front yet,” he added.
$1 = INR 84.90