Indian hot rolled coil (HRC) markets continued to remain under pressure of weak demand and rising imports with trade prices edging lower on continued discounted sales in trade channels, SteelOrbis learned from trade and industry circles on Monday.
Sources said that trade HRC price lost INR 200/mt ($2/mt) at INR 52,200/mt ($625/mt) ex-Mumbai and down INR 1,000/mt ($12/mt) at INR 53,000/mt ($634/mt) ex-Chennai in the south.
Citing industry assessment, the sources said that an estimated 120,000 mt of HRC and plates are expected arrive at Indian ports during end-July and early August amidst mounting concerns among producers which are already considering a second base price reduction later this month to cope with pressures of excess supplies in the market.
“While volumes available in the market is rising every week, demand is dwindling across all user industries. Trade prices hence will continue to fall, and the question is at what pace and this will continue to prompt buyers to defer fresh bookings in a falling market,” a Mumbai based distributor told SteelOrbis.
“In a market where both bills and trade are offering discounts to conclude bookings, buyers are extremely aggressive and declining to commit unless the discount is ‘good’. It is difficult to predict what will be the next bottom of the market,” he said.
$1= INR 83.50