The local Indian hot rolled coil (HRC) market has continued to remain under pressure from weak demand from industrial users and higher imports, with sales continuing to be pushed at a discount by both producers and trade channels, SteelOrbis learned from trade and industry circles on Monday, July 22.
Sources said that, while mills’ base prices are listed at around INR 55,000/mt ($658/mt) ex-works, trade channels have maintained prices at INR 52,200/mt ($627/mt) ex-Mumbai and INR 53,000/mt ($634/mt) ex-Chennai in the south. Besides, some market insiders said that several bookings have already been reported at slightly below INR 52,000/mt ($622/mt).
The sources and traders said that an estimated 75,000 mt of imports, ex-China and ex-South Korea, are expected to arrive at Indian ports in the first week of August with the landed price averaging in the range of $562-570/mt CFR. It is also heard in the market that additional import bookings for ex-Vietnam HRC of at least 100,000 mt were concluded in a price range of around $560-565/mt CFR last week, indicative of further pressures on the domestic market.
“Indian mills are already saddled with high inventories and discounts are failing to move stocks faster. There is also a rising shift towards cheaper imports, aggravating the bearish mood in the market,” a Mumbai-based distributor told SteelOrbis.
“The gloom will increase in the coming months as expectations of a government stimulus for industrial growth are also fading,” he added.
$1 = INR 83.60