This week, Indian hot rolled coil (HRC) mills have kept confirming bookings at additional discounts and dealers have been passing on this benefit to consumers to cope with the high volumes of material coming into the market, SteelOrbis learned from trade and industry circles on Monday, July 8.
According to sources, large steel mills’ July base HRC prices have settled at INR 53,000-54,000/mt ($635/mt-647/mt) ex-works. However, materials were still being sold at a lower price in trade channels, at INR 52,400/mt ($628/mt) ex-Mumbai and at INR 53,000/mt ($641/mt) ex-Chennai in the south, down by INR 500/mt ($/mt) week on week.
According to sources and an analyst with a Mumbai-based advisory firm, after some mills completed maintenance shutdowns during the April-May period, production of HRC in June increased to 4.36 million mt, compared to 4.23 million mt in May, and the excess supplies, coupled with weak demand, has forced mills to drop base prices and push sales by offering additional discounts.
Besides, analysts said that imports have continued to weigh on the market, with several large industrial users concluding bookings at cheaper rates. He said that ex-China HRC has been booked at INR 49,500/mt ($593/mt) landed at Mumbai port excluding 18 percent goods and service tax (GST). Imports from countries with FTA agreements with India like Japan and South Korea have been booked at INR 51,500/mt ($617/mt) landed at Mumbai port.
$1 = INR 83.50