Although last week most Indian mills were positive in terms of the price outlook, this week has started with concerns over the future price trend as the bullish sentiments which appeared on the back of stimulus measures in China have not been sustained due to the lack of real demand growth.
Sources said that local hot rolled coil (HRC) trade prices have increased by INR 900/mt ($17/mt) to INR 49,500/mt ($580/mt) ex-Mumbai, though remaining relatively stable at INR 51,500/mt ($614/mt) ex-Chennai in the south. At the same time, according to sources, this week a number of Indian traders have cut their offers to INR 47,500-48,000/mt ($565-571/mt) “just to sell the products as demand is weak”.
In the meantime, local Indian cold rolled coil (CRC) prices have remained relatively stable across different markets, at INR 56,500-58,000/mt ($673-709/mt). At the same time, the same situation has been seen in the CRC segment, with discounts on workable prices from traders heard at INR 55,000/mt ($654/mt).