India: Trade-level HRC, CRC prices remain rangebound even as market awaits election results

Hot-rolled coil (HRC) and cold-rolled (CR) coil prices in India have remained relatively rangebound as market participants are awaiting the results of the ongoing general elections after which market activities are expected to gather momentum.

BigMint's benchmark assessment (bi-weekly) for domestic HRC (2.5-8mm, IS2062, Gr E-250 Br.) increased by INR 100/t w-o-w ($1/t) to settle at INR 54,000/t ($648/t) on 21 May 2024. However, CRC (0.90mm, IS 513, CR1) prices moved down by INR 500/t ($6/t) w-o-w to INR 60,800/t ($730/t). These prices are ex-Mumbai, excluding 18% GST, and are for cut-to-length (CTL) deliveries. (INR 1 = USD 0.0120027 ; USD 1 = INR 83.3144)

Market updates

1. Low demand, limited supply: The traders' market exhibits continued sluggishness due to limited demand at current prices. While supply remains somewhat constrained, it is showing signs of alleviating with SAIL's production re-entering the market.

"Market activity has been subdued following a brief uptick in demand after elections in some states. This is likely due to a release of pent-up funds and buying interest. However, the sudden rise in activity has been waning and we anticipate a renewed increase in demand after the formation of the new government. In the interim, prices are likely to remain within the current range," said a source.

2. Export, import trends: India's exports and imports of bulk HRC and plates are slowing down, as per recent vessel line-up data sourced by BigMint.

Indian steel mills are prioritising the domestic market for HRC, putting export offers to South-east Asia and the Middle East (ME) on hold for another week. This week, Indian mills have continued to hold HRC export offers (S275, 3mm) to Europe as well.