Pressures unabated in local Indian HRC market for second consecutive week

Pressures have continued unabated for the second consecutive week in the local Indian hot rolled coil (HRC) market, with prices shedding another INR 500/mt ($7/mt) during the past week and dropping to around INR 31,500/mt ($472/mt) ex-works as demand has continued to fall with dealers unwilling to stock up, traders said on Monday, December 7.
 
"Market sentiments are negative considering that local prices are falling to lower levels even without any significant pressures from imports, reflecting the fundamental weakness in demand in the manufacturing sector," a Kolkata-based trader said.
 
"The year-end considerations ahead and local steel mills' refusal to adjust prices during December have contributed to a worsening of market conditions and volumes," the trader added.
 
Sources said that ex-China HRC offers have remained stable at $295-300/mt CFR Mumbai for January delivery, but no significant transactions have been reported in the market.
 
According to a Mumbai-based trader, the depreciating Indian currency currently at INR 66.69 to the US dollar is providing import protection for local steel mills, but the latter are unwilling to adjust prices to push volumes and this has also contributed to the low activity market.