Indian HRC Market Facing Tough Time, Suppliers Seeking For Orders

The Indian Hot Rolled Coil (HRC) market is currently witnessing stable prices, with suppliers struggling to find buyers in both domestic and export markets. Despite a slight price correction towards the end of April 2023, demand for HRC remains weak, causing buyers to adopt a wait-and-watch approach.

The softening global trends, particularly in major import destinations like Vietnam, EU, and UAE, where prices have dropped by $25-30/ton in the last 7 to 10 days, is also keeping buyers at bay, as assessed by Ofbusiness from Industry participants.

Price And Availability

• The prices of HRC in major markets in India are stable this week, with the Ex-NCR/Delhi market at around Rs. 59,500/ton, Ex-Mumbai at Rs. 60,000/ton, Ex-Ahmedabad at Rs. 60,500/ton, Ex-Chennai at Rs. 62,000/ton, Ex-Kolkata at Rs. 58,200/ton, and Ex-Hyderabad at Rs. 62,000/ton. However, these prices have declined by Rs 500-1,000/ton against the last week of April 2023. Meanwhile, the availability of HRC has slightly improved in Indian markets, as mills are pushing materials to the open market.

• The prices of Cold Rolled Coil (CRC) in major markets in India are also stable this week against last week, with the Ex-NCR/Delhi market at around Rs. 64,000/ton, Ex-Mumbai at Rs. 64,700/ton, Ex-Ahmedabad at Rs. 64,000/ton, Ex-Chennai at Rs. 66,000/ton, Ex-Kolkata at Rs. 64,000/ton, and Ex-Hyderabad at Rs. 68,000/ton.

Exports

The export price indication for Indian HRC is around $600-605/ton FOB basis, a drop of around $40-45/ton in the last 10 days. Despite this sharp decline, hardly any major deals have been reported, as buyers are waiting for stability in the global market.

Future Prospect

Flat Products face a negative outlook in the current market due to low demand and improved availability. Buyers are adopting a cautious approach, procuring only urgent materials, leading sellers to reduce prices to clear inventory. Unattractive export order prices further burden mills, possibly leading to price corrections in the coming week.

OFB’s Insight

The Indian HRC market is currently stable, but the weak demand and modest availability in both domestic and export markets are concerning. The wait-and-watch approach adopted by buyers, coupled with the softening global trends, is keeping the market subdued.

The sellers are struggling to find buyers, leading to a reduction in prices to clear inventory. The market outlook for Flat Products in India is negative, and the possibility of further price corrections in the coming week cannot be ruled out.

Read more: Margins Remain Strong With Indian Sponge Iron Manufacturers Despite Price Corrections

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