In the past week, the Indian hot rolled coil (HRC) market has continued to remain quiet, as in previous weeks. Seasonal factors, high inflation and stable, medium-volume inventories are seen to be among the main reasons for the slow activity in the market. Indian flat steel producers' domestic HRC offers currently stand at INR 35,500-36,500/mt ($788-810/mt); however, market players find this price range to be on the high side. Due to very weak domestic demand, stockists are first seeking to sell off the materials they have in hand.
As regards HRC import offers to India, mills from China, South Korea and the US are giving very competitive offers to the export markets. However, Indian buyers consider that HRC offers from South Korea and the US, as low as $700-720/mt FOB, are not workable. Currently, import activity is very weak. The ongoing strength of inventories, weak domestic demand and Indian buyers' anticipation of a further price decline have brought trading to a halt. Even buyers' interest in ex-China SS400 3-12 mm HRC offers at as low as $690/mt FOB is weak.
International buyers' interest in Indian producers' HRC export offers at $720-730/mt is very low, given the very aggressive Chinese offers. Thus, it is thought that it will be difficult for the Indian producers' offers to find acceptance in the market.
While players in the Indian HRC market prefer to wait, the general market expectation suggests that in the medium-term demand will first liven up and purchases will afterwards start once inventories are depleted.