Local Indian hot rolled coil (HRC) trade prices have remained stable in the past week amid thin trading activity from weak end-user demand and import pressures, with continuing further downside risks, SteelOrbis learned from trade and industry circles on Monday, August 12.
Sources said that HRC trade prices have been stable at INR 51,300/mt ($611/mt) ex-Mumbai and unchanged at INR 52,000/mt ($620/mt) ex-Chennai in the south.
The sources said that, even though large mills have announced cuts in base prices in the past week, this failed to either boost sentiments or trade volumes as producers are still having to add discounts even on lower base prices to be able to conclude new bookings, reflecting the fundamental demand weakness in the market.
Sources citing trade-level information said that the volume of import arrivals at Indian ports by mid-August is estimated at 85,000 mt, the bulk of it ex-China material routed through FTA countries like South Korea, which will exert fresh pressures and is expected to trigger the next downturn in local prices.
“Local Indian prices are very near the low seen during the pandemic years. Various bearish factors are combining, leading to the present almost-distress-level market conditions. Indian exports are almost at a halt and mills are forced to divert export allocations to local sales, compounding the impact on prices from weak industrial demand and rising imports,” a Mumbai-based distributor said.
“The only ray of hope in the short term can be government action in curbing imports through a combination of tariff and non-tariff barriers. In the longer term, government policy initiatives are needed to support industrial demand,” he said.
$1 = INR 83.90