India: Trade-level HRC prices stay range-bound in run-up to festive season
...
- Market sees need-based buying
- HRC exports remain subdued
Trade-level hot-rolled coil (HRC) and cold-rolled coil (CRC) prices remained range-bound at INR 46,000-51,000/tonne (t) ($599-629/t) and INR 55,500-60,000/t ($685-734/t), respectively, across various markets.
BigMint's benchmark assessment (bi-weekly) for HRCs (IS2062, Gr E250, 2.5-8 mm) and CRCs (IS513, Gr O, 0.9 mm) remained stable at INR 47,100/t and INR 55,900/t, respectively, on 24 September 2024. These prices are quoted exy-Mumbai, excluding 18% GST, and are for cut-to-length (CTL) deliveries.
Market updates
1. Traders' market remains range-bound: The market remained range-bound, with need-based procurement observed in some markets leading up to the upcoming festive season.
A market participant highlighted, "There has been an increase in need-based procurement in the market. Additionally, participants are unwilling to accept prices below current levels. As a result, I anticipate that the market will stabilise at these levels and not decline further."
2. Export and import trends: Cumulative import volume, based on vessel line-up data compiled by BigMint, reached 6,27,334 t till 23 September 2024. It was 6,27,426 t in August and 6,36,651 t in July. However, an additional 83,440 t are expected by the end of September, and a further 2,19,749 t are expected in October.
Indian HRC exports remained inactive, as mills maintained their offers to Southeast Asia and the Middle East despite competitive pricing from other sources. The prevailing geopolitical tensions in the Middle East region contributed to a subdued global market sentiment. Additionally, Indian HRC export offers to Europe remained unchanged w-o-w, with no confirmed deals reported due to the ongoing anti-dumping investigations.
Outlook
As the festive season approaches, the market anticipates an increase in demand, which is likely to keep prices stable or lead to a slight rise in the near future.
