Local Indian hot rolled coil (HRC) prices have continued to seek lower levels amid weak demand and rising inventories held by producers, while large industrial consumers have been restricting restocking to minimal need-based volumes, SteelOrbis learned from trade and industry circles on Monday, June 8.
Indian HRC trade-level prices are down INR 100/mt ($1/mt) to INR 56,900/mt ($597/mt) ex-Mumbai and have lost INR 200/mt ($2/mt) to INR 58,300/mt ($611/mt) ex-Chennai in the south.
However, it is learned that large mills have decided to keep HRC base price unchanged for the current month, reflecting inventory pressures, and that any hikes in base prices to offset the rising cost of production would be counter-productive to moving volumes into the market. The major mills’ base prices for HRC stand at INR 59,000-60,000/mt ($620-631/mt), while some indicate even higher levels, but these have not been assessed as workable.
According to the sources, import pressures have been mounting as indicated by an over 60 percent rise in inward shipments last month, which, coupled with rising inventories across the supply chain, reined in large mills from hiking June base prices despite the rising cost of production, particularly the rising cost of imported coking coal.
“Rising energy prices are driving inflationary pressures across manufacturing and, with demand declining, steel consumers are reducing inventories of raw material. Trade activity is at a very low level. The market is in for a prolonged bear phase,” a Mumbai-based distributor said.
“Cheap imports are flowing in again, which will keep prices under pressure. Our information from ports indicates that an estimated 20,000-30,000 mt have already arrived since the start of June and we fear total imports may cross the 423,000 mt seen in May 2026,” he added.
$1 = INR 95.22
