- Trading activity remains muted across markets
- Wait-and-watch approach dominates trader sentiment
Trade-level prices of hot-rolled coils (HRC) in India remained stable this week, with HRC prices assessed in the range of INR 56,500–59,300/t ($585-614/t) and cold-rolled coil (CRC) prices assessed at INR 61,000–68,000/t ($631-704/t), as sluggish demand and cautious market sentiment continued to weigh on prices.
BigMint’s bi-weekly benchmark assessment for HRC (IS2062, Gr E250, 2.5–8 mm/CTL) held stable w-o-w at INR 58,700/t ($608/t) as of 19 May against previous week.
However, CRC (IS513, Gr O, 0.9 mm/CTL) prices decreased by INR 500/t ($5/t) to INR 66,000/t ($683/t) on 19 May from INR 66,500/t ($688/t) on 12 May. These assessments are ex-Mumbai for the distributor-to-dealer segment and exclude 18% GST.
Market update
Trade-level prices of HRC and CRC remained largely unchanged this week, reflecting the continued sluggishness in demand. Trading activity stayed subdued across major markets, as buyers refrained from placing fresh bulk orders and limited their procurement strictly to immediate, needs-based requirements.
According to a market participant, “Demand remains extremely weak at present. There is some expectation of improvement once industrial production normalises with the return of labourers at factories and sites and the flow of fresh orders, but that remains speculative for now. The market will need to wait and watch how demand shapes up in the coming weeks.”
On the raw materials side, coking coal prices remained stable on a w-o-w basis at around $266/t as of 15 May. Overall, the market sentiment continues to remain cautious-to-weak amid muted buying interest and uncertain near-term demand recovery prospects.
Additional updates
Import volumes: India’s bulk imports of HRCs touched 169,172 t as on 15 May. Around 138,586 t of additional cargoes are expected by early-June.
Export volumes: India’s bulk exports of HRCs touched 69,541 t as on 15 May. Around 53,356 t of additional cargoes are expected to be shipped.
Outlook
India’s flat steel market is likely to remain bearish in the near term amid weak downstream demand and cautious buying activity. However, stable coking coal prices could support mills from further price corrections. Overall, market participants are expected to maintain a cautious wait-and-watch approach until clearer signs of demand recovery emerge.
Leave a Reply