Local Indian hot rolled coil (HRC) trade prices have continued to edge down amid lackluster market conditions and the absence of any direction, and with more sellers resorting to discounted sales further augmenting the negative outlook, SteelOrbis learned from trade and industry circles on Monday, January 22.
Sources said that HRC trade prices have slipped INR 100/mt ($1.20/mt) to INR 57,100/mt ($687/mt) ex-Mumbai and are down INR 200/mt ($2/mt) at INR 57,750/mt ($695/mt) ex-Chennai in the south.
However, a number of sources and traders have reported that large distributors in western and northern regional markets have been pushing materials at the discounted price of INR 53,000/mt ($643/mt), and even lower at INR 52,500/mt ($631/mt) for larger-volume bookings, indicating the strong oversupply situation and weak demand in the market.
“Three negatives of excess domestic supplies, rising imports and the weakening of demand are converging, making it a perfect bear market. The conditions will be prolonged also because of the country entering into election mode within a few more months and expected government inaction during the period,” a Mumbai-based distributor told SteelOrbis.
The industry estimates at least 50,000-60,000 mt of imported HRC have been booked from Asia at around $600-610/mt CFR mainly from China over the past week. The arrival of these bookings will be in February and will increase the pressure on the price line.
Another trader said that market indications were that the landed price of ex-China HRC currently works out at $610-620/mt at Mumbai port, which was at a significant discount to current local trade prices, triggering higher levels of import sourcing by large industrial end-users.
$1 = INR 82.10
