Local Indian cold rolled coil (HRC) prices have lost ground coming under renewed pressures from weak end-user demand and the resumption of discounted sales by re-rollers in face of rising inventories across market participants, SteelOrbis learned from trade and industry circles on Monday, November 25.
Sources said that benchmark 0.9 mm CRC prices are down INR 800/mt ($9/mt) to the range of INR 56,200-57,200/mt ($666-677/mt) ex-Mumbai and have also moved down by INR 800/mt ($9/mt) to INR 57,000/mt ($675/mt) ex-Chennai, but net of discount the price has been heard even lower at INR 55,200/mt ($658/mt).
The sources said that large end-users in the consumer durables and automobile industries have been heard to be adjusting output levels amid tepid demand growth and have been lowering raw material procurement, forcing standalone re-rollers to resume discounted sales to check inventory carrying costs.
The sources said that buyers are only interested in confirming small-volume bookings at lower prices as demand in the post-festival season is showing a weakening, forcing re-rollers to drop prices.
“Winter is usually seen as the peak steel demand season. But these are not normal times and there is no demand uptick in sight. We expect prices to remain range-bound,” a Mumbai-based distributor told SteelOrbis.
“The outlook remain negative. Higher tariffs proposed by the incoming Trump administration in the US and the disappointing economic stimulus in China are portents of a rise in inflow of cheap imports,” he added.
$1 = INR 84.40