Indian HRC market steady
2023-03-17 08:22:17 [Print]
BEIJING (Asian Metal) 17 Mar 23 - The HRC market in India runs steadily at the moment, and the demand from downstream industries remains insufficient. Presently, the mainstream prices of HRC IS2062 3.0mm*1,500mm*C stand at INR59,000-62,000/t (USD714-750/t) D/P in warehouse Mumbai, in line with late last week. Insiders foresee flat prices in the following several days seeing the steady market.
"The demand from downstream industries remains soft as end users face capital pressures and reduce purchasing volumes with the approach of the end of the financial year, and we have to provide discounts to promote sales. On Thursday, a regular buyer bought 20t of HRC IS2062 3.0mm*1,500mm*C at INR60,000/t (USD726/t) when we quote INR60,500/t (USD732/t)," noted a local trader. In the meantime, the trader pointed out that domestic participants forecast tough economy in India this year and end users remain cautious about purchasing. Besides, local steel mills keep increasing production capacity. Adopting pessimistic attitude towards the market prospect, the trader plans to cut stocks by 20% in the following two weeks, with around 800t in inventory right now. He worries about a price decline in the coming several days upon the low purchasing activities of downstream customers.
Based on the regular monthly sales volume of 4,500t, the trader might sell 900t in March, down from 1,000t in February. The sales volume in the first quarter of 2023 would achieve 5,900t, against 40,000t more or less in 2022.
Another local trader confirms the steady market amid the stable prices, quoting INR62,000/t (USD750/t) without concession for HRC IS2062 3.0mm*1,500mm*C. "Regular clients purchase normally, but we found it hard to develop new customers as end users tend to postpone the purchase due to the rising capital pressure with the approach of the financial year end," revealed the trader, who sold 500t of HRC IS2062 3.0mm*1,500mm*C on Thursday. "The client required INR61,500/t (USD743/t), but we refused seeing the worldwide price hike," added the trader. In the meantime, he disclosed that the domestic supply reduced as steel mills tend to hike exports for the more considerable profits and the improving demand in Middle East and Europe. The trader believes prices of HRC might keep flat in the forthcoming several days upon the firm prices from steel mills.
Presently, the trader holds around 2,000t of stocks. The trader might sell 15,000t in March, identical to February. With the typical sales volume of 21,000tpm, the trader estimates that the sales volume might achieve 50,000t in the first quarter of 2023, against 140,000t in 2022.
"The demand from downstream industries remains soft as end users face capital pressures and reduce purchasing volumes with the approach of the end of the financial year, and we have to provide discounts to promote sales. On Thursday, a regular buyer bought 20t of HRC IS2062 3.0mm*1,500mm*C at INR60,000/t (USD726/t) when we quote INR60,500/t (USD732/t)," noted a local trader. In the meantime, the trader pointed out that domestic participants forecast tough economy in India this year and end users remain cautious about purchasing. Besides, local steel mills keep increasing production capacity. Adopting pessimistic attitude towards the market prospect, the trader plans to cut stocks by 20% in the following two weeks, with around 800t in inventory right now. He worries about a price decline in the coming several days upon the low purchasing activities of downstream customers.
Based on the regular monthly sales volume of 4,500t, the trader might sell 900t in March, down from 1,000t in February. The sales volume in the first quarter of 2023 would achieve 5,900t, against 40,000t more or less in 2022.
Another local trader confirms the steady market amid the stable prices, quoting INR62,000/t (USD750/t) without concession for HRC IS2062 3.0mm*1,500mm*C. "Regular clients purchase normally, but we found it hard to develop new customers as end users tend to postpone the purchase due to the rising capital pressure with the approach of the financial year end," revealed the trader, who sold 500t of HRC IS2062 3.0mm*1,500mm*C on Thursday. "The client required INR61,500/t (USD743/t), but we refused seeing the worldwide price hike," added the trader. In the meantime, he disclosed that the domestic supply reduced as steel mills tend to hike exports for the more considerable profits and the improving demand in Middle East and Europe. The trader believes prices of HRC might keep flat in the forthcoming several days upon the firm prices from steel mills.
Presently, the trader holds around 2,000t of stocks. The trader might sell 15,000t in March, identical to February. With the typical sales volume of 21,000tpm, the trader estimates that the sales volume might achieve 50,000t in the first quarter of 2023, against 140,000t in 2022.
