Indian HRC market quiet
2023-03-30 08:22:10 [Print]
BEIJING (Asian Metal) 30 Mar 23 - The demand from downstream industries remains sluggish in India as end users hold back from purchasing with the approach of the financial year end, and the current HRC market runs slowly, amid stable prices. Presently, the mainstream prices of HRC IS2062 3.0mm*1,500mm*C stand at INR58,000-60,000/t (USD704-728/t) D/P in warehouse Mumbai. Insiders predict flat prices of HRC in the coming several days seeing the steady market.
"We tried to contact with several regular clients this week, but few of them showed intention in purchasing, with wait-and-see attitudes," noted a local trader, who did not close any deals on Wednesday and sold 10t of HRC IS2062 3.0mm*1,500mm*C at INR59,300/t (USD720/t) when offering INR59,500/t (USD722/t) on Tuesday. "Participants remain confused about the market prospect seeing the unpromising economy prospect but the rising prices in the international market. Besides, end users face tight capital flow with the arrival of the financial year end, and thus they tend to hold back from purchasing," explained the trader. Nevertheless, given the firm prices from steel mills, the trader refuses to cut prices down and forecasts flat prices of HRC in the following several days.
Presently, the trader holds around 100t of stocks. With the regular monthly sales volume of 600t, the trader estimates that the sales volume would reach 400t in March, identical to February. He might sell 1,200t in the first quarter of 2023, against 5,500t or so in 2022.
"The market performs inactively dragged by the soft demand. With wait-and-see attitudes, end users tend to postpone purchasing. We did not close any deals on Tuesday and Wednesday, and sold 20t of HRC IS2062 3.0mm*1,500mm*C at INR58,000/t (USD704/t) on Monday, while last sold 30t of the material at the same price late last week," noted another local trader, who estimates that the sales volume in March would decrease by 20% compared with February. In the meantime, he stated that the price drop of around INR2,000/t (USD24/t) in the past three weeks weakened end users' purchasing activities to some extent. Upon the watchful atmosphere in the market, the trader believes prices of HRC would go on stable in the upcoming several days.
Based on the typical monthly sales volume of 500t, the trader would sell 400t in March, down from 500t in February. The sales volume in the first quarter would reach 1,400t, against 6,200t in 2022, holding approximately 80t of stocks at present.
"We tried to contact with several regular clients this week, but few of them showed intention in purchasing, with wait-and-see attitudes," noted a local trader, who did not close any deals on Wednesday and sold 10t of HRC IS2062 3.0mm*1,500mm*C at INR59,300/t (USD720/t) when offering INR59,500/t (USD722/t) on Tuesday. "Participants remain confused about the market prospect seeing the unpromising economy prospect but the rising prices in the international market. Besides, end users face tight capital flow with the arrival of the financial year end, and thus they tend to hold back from purchasing," explained the trader. Nevertheless, given the firm prices from steel mills, the trader refuses to cut prices down and forecasts flat prices of HRC in the following several days.
Presently, the trader holds around 100t of stocks. With the regular monthly sales volume of 600t, the trader estimates that the sales volume would reach 400t in March, identical to February. He might sell 1,200t in the first quarter of 2023, against 5,500t or so in 2022.
"The market performs inactively dragged by the soft demand. With wait-and-see attitudes, end users tend to postpone purchasing. We did not close any deals on Tuesday and Wednesday, and sold 20t of HRC IS2062 3.0mm*1,500mm*C at INR58,000/t (USD704/t) on Monday, while last sold 30t of the material at the same price late last week," noted another local trader, who estimates that the sales volume in March would decrease by 20% compared with February. In the meantime, he stated that the price drop of around INR2,000/t (USD24/t) in the past three weeks weakened end users' purchasing activities to some extent. Upon the watchful atmosphere in the market, the trader believes prices of HRC would go on stable in the upcoming several days.
Based on the typical monthly sales volume of 500t, the trader would sell 400t in March, down from 500t in February. The sales volume in the first quarter would reach 1,400t, against 6,200t in 2022, holding approximately 80t of stocks at present.
