Imported HRC offers hits below INR 40,000/MT

Imported Hot Rolled Coil prices in India fall below INR 40,000/MT. Imported Coils, which saw a free fall in the past few weeks, is expected to fall further if demand fails to improve.

Domestic manufacturers did not officially announced any price cut in November, yet discount was offered at dealers and trader’s level. SteelMint learnt from market sources that high volatility in imported offers has prevented traders to take any bookings currently as some of them expect the prices to fall further. This week, HR Coils of thickness 3-10 mm from China has hit below INR 40,000/MT levels.

An importer based in Mumbai commented, “HRC of Chinese origin is offered at as low as INR 39,500/MT-39,750/MT for bulk deals of 5000 MT and above. Whereas, for quantities of 100-200 MT, it is offered between INR 40,000-40,250/MT. This market has turned out to be a buyers’ market as the sellers have lost their pricing power.”

Trading prices in Faridabad remain unchanged as compared to previous week. Currently, HRC is offered at around INR 41,500-42,000/MT. Slowdown in sales volume has led to apprehension that prices may correct further.

“We are not booking any orders as of now, since our previous months stock has not been cleared off. Given the current status of several projects, demand has been very low. It is riskier to take any position now since we are expecting further correction in the market prices in upcoming weeks,” said a Faridabad based trader.

However, market in Chennai is guided along a positive direction. Amid this, declining price regime, dealers are optimistic that sales volume will increase this month as compared to previous month. Threat for imported HR products are limited. Whereas, import of CR products is still rising. Domestic HR Coil is currently trading at INR 42,000/MT. As per trade data, imported Hot Rolled Coil (Pickled & Oiled) of Korean origin was settled at around INR 43,900/MT* in CIF Chennai last week.

USD 1 = INR 61.4
All domestic prices mentioned in the article are inclusive of ED, VAT extra,
*Imported HRPO prices are in CIF Chennai port