Local Indian hot rolled coil (HRC) trade prices have lost ground in reaction to government steel mills dropping base prices due to falling demand, and private producers are expected to follow suit over the current week, while import arrivals at ports have continued to rise, SteelOrbis learned from trade and industry circles on Monday, September 9.
Sources said that HRC trade prices have lost INR 1,000/mt ($ 12/mt) to INR 49,000/mt ($584/mt) ex-Mumbai and are down INR 750/mt ($9/mt) to INR 50,150/mt ($597/mt) ex-Chennai in the south.
They said that more mills will be forced to cut base prices in view of large inventories both at mills and traders and given weak industrial demand.
Also, the latest revised estimates indicate that about 330,000 mt of imported flat products are expected to arrive at Indian ports by September 15, further aggravating pressures from the supply side on the price line. According to sources, prices are expected to remain under further pressure this month, though some stability may be seen when there is more clarity on antidumping duties and import tariffs.
“Consumers are fully stocked with both domestic and imported materials. Industrial users are no willing to restock given the current weak demand outlook. It is a challenge to push sales in the market,” a Mumbai-based distributor told SteelOrbis.
“Trade HRC prices hence face more downside risks as sellers both in trade and at mills will have to resort to discounted sales to manage inventories,” he added.
$1 = INR 83.90