Local Indian hot rolled coil prices have remained stable but discounted sales have been seen amid muted trading activity, with the market facing several challenges including weak demand, rising inventories at both producers and distributors, and import pressures.
Sources said that, while official prices are reported stable at INR 55,500/mt ($664/mt) ex-Mumbai and unchanged at INR 56,000/mt ($670/mt) ex-Chennai in the south, actual trades have been reported at a significant discount at INR 53,000/mt ($634/mt) in the western regional market and at INR 54,000/mt ($646/mt) in the northern region.
“Demand is getting extremely weak. Expectation of a government stimulus is also fading, impacting sentiments. Buyers are only willing to conclude even small-volume deals only at steep discounts. Margins are under severe pressures for both producers and distributors,” a Mumbai-based distributor told SteelOrbis.
“Actual users are lowering bookings as the monsoon season is the usual lean period and manufacturers are adjusting output and hence there is no urgency to restock raw materials. We expect current bearish conditions to continue for two to three months till the rainy season ends and there is clarity on the new economic thrust of the new federal government,” he added.
$1 = INR 83.60