India: Trade level HRC prices range-bound amid price reduction by mills

Trade reference prices of hot-rolled (HR) and cold-rolled (CR) coils have remained mostly range-bound for the week ended 6 July 2024. Despite few of the private Indian flat steel producers have reduced the prices of HRC by around INR 1,000-1,750/t with effect from 1 July 2024. The price reduction for CRC has been around INR 1,000-1,500/t for July 2024 sales. An announcement from the PSU major is yet to be received.

BigMint's biweekly assessed trader's market prices for HRC (2.5-8mm / CTL, IS2062, Gr E250, Br.) remained in the bounds of INR 51,000-57,000/tonne (t) exy basis as of 5 July 2024, for the nine markets under assessment. The decline in prices have been mere INR 300-800/t compared with levels on 2 July 2024. Similarly, the assessed prices for CRC (0.9mm / CTL, IS513 CR1) stood around INR 57,000-64,000/t exy basis as of the same date. The decline in prices was around INR 100-500/t during the period under review.

Market Updates:

Need-based procurement in domestic market: The demand in the domestic traders' market has remained primarily driven by immediate needs, resulting in subdued price movements within this segment.

"Market demand has not improved much in the traders' market segment, with buyers purchasing only what they need in smaller quantities and pushing for lower prices," observed a market participant. "The mills have lowered prices. However, this adjustment has not significantly impacted the market conditions. The participant emphasized ongoing margin pressure due to increasing preference for cheaper, imported materials," he added.

Export, import trends: The bulk vessel line up data tracked by BigMint revealed the arrival of 260,525 t of HRC and plate in July 2024, out of which 40,616 t are already at berth. This computes to 60% of the previous month's import volume of 430,835 t. Meanwhile, exports have slowed down considerably.

Indian mills have resumed HRC (S275, 3mm) export offers to Europe. Current offers are at $650-660/t CFR Antwerp ($600-610/t FOB east coast India). No firm deals were heard concluded as buyers are cautious with summer approaching, weak end-user demand and ample stock. Indian steel mills continued to hold their HRC export offers (S275, 3mm) to the EU this week.