Local Indian hot rolled coil (
HRC) prices have remained stable during the past week at around INR 40,500/mt ($663/mt) ex-works amid cautious buying and uncertainties over further price adjustments by mills, traders said on Thursday, April 24.
According to two Mumbai-based traders, transactions volumes have remained stagnant as buyers have been unsure whether steel mills will lower their prices next month.
The traders said that, with coking coal prices falling by around 20 percent, most steel mills have been increasing their volumes of coking coal imports and will achieve substantial savings on raw material costs. However, market participants are unsure whether the steel mills will pass on the benefits of lower material costs to buyers to boost demand or whether they will keep their prices stable in order to achieve higher sales margins.
This short-term uncertainty has made buyers cautious about concluding bookings for large tonnages and so they prefer to wait and watch the pricing strategy of the steel mills next month.
Market sources said that local
HRC prices and volumes are expected to remain flat until next month when steel mills will decide on price adjustments based on factors including the trend of the appreciating rupee against the dollar, coking coal import contracts for the April-June quarter, and political changes from the ongoing national elections.