The local Indian hot rolled coil (HRC) market has showed a mixed trend with prices falling sharply in major trading hubs but being relatively stable in some regions, while sentiments have remained very negative amid a combination of depressed industrial demand, sustained high-volume imports and oversupply, and with the festival holidays approaching, SteelOrbis learned from trade and industry circles on Monday, September 23.
Sources said that HRC trade prices have lost INR 1,000/mt ($12/mt) to INR 47,200/mt ($563/mt) ex-Mumbai, but are unchanged at INR 50,050/mt ($597/mt) ex-Chennai in the south. At the same time, most market insiders believe that prices will continue to go down as long as excess supplies originating from China continues. Meanwhile, with markets scheduled for an extended holiday starting next month, most are unwilling to commit fresh bookings. “With current prices at a three-year low, the continued declines will ultimately impact capital expenditure plans of large mills,” a market insider said.
“There is oversupply at every point of the supply chain. Mills are holding large inventories as are trade channels in the midst of depressed demand. Imports are surging at the same time, exerting constant pressure on the price line,” a Mumbai-based distributor told SteelOrbis.
“We are also expecting some tariff barriers from the government as promised in our discussion with the ministry of steel. But the question is how soon they will be implemented,” he added.
$1 = INR 83.90