Indian HRC traders pessimistic
2023-04-21 08:13:20 [Print]
BEIJING (Asian Metal) 21 Apr 23 - HRC traders in India adopt bearish attitudes towards the market at the moment, and some of them cut prices to promote sales. The current prevailing prices of HRC IS2062 3.0mm*1,500mm*C hover at INR59,000-62,000/t (USD718-755/t) D/P in warehouse Mumbai, down by INR500/t (USD6/t) from late last week. Insiders believe local HRC prices would edge down further in the coming several days seeing the slow market.
"Adopting pessimistic attitudes towards the market prospect, we endeavored to cut stocks since early this month. Now, we hold about 6,000t of inventories, down from 10,000t in the middle of March," noted a local trader. According to him, the demand from downstream industries remains steady at the beginning of the new financial year, but the downward price trend in China dampens the purchasing activities of end users. "After tough negotiations, we finally sold 500t of HRC IS2062 3.0mm*1,500mm*C at INR59,000/t (USD718/t) on Thursday, while could sell 700-800t a day easily in the middle of March," added the trader. He worries prices of HRC would decrease again in the forthcoming several days in view of the watchful atmosphere in the market.
With the regular monthly sales volume of 20,000t, the trader would sell 17,000t in April, down from 18,000t in March. He recorded the sales volume of around 54,000t in the first quarter of 2023, against 140,000t or so in 2022.
"Discouraged by the decreasing prices in major HRC supplying countries, we remain eager to close deals now, for fear of a price decline here," noted another local trader, quoting INR62,000/t (USD755/t) for HRC IS2062 3.0mm*1,500mm*C, similar to late last week. "Export prices from China witnessed the total markdown of around USD50/t in recent one month, and those from Russia stand as low as USD660/t this week. Besides, the demand from downstream industries remains far from strong," explained the trader. Meanwhile, he disclosed that though local government announced the launch of several large projects, it takes time for the demand to recover. The trader sold about 50t of HRC at INR62,000/t (USD755/t) on Thursday and did not close any deals on Wednesday. He worries a price decline in the coming several days seeing the low purchasing activities of downstream customers.
Holding about 2,800t of stocks, the trader would sell 1,500t in April, against 800t in March. He roughly sold 3,500t in the first quarter of 2023 and 23,000t in 2022.
"Adopting pessimistic attitudes towards the market prospect, we endeavored to cut stocks since early this month. Now, we hold about 6,000t of inventories, down from 10,000t in the middle of March," noted a local trader. According to him, the demand from downstream industries remains steady at the beginning of the new financial year, but the downward price trend in China dampens the purchasing activities of end users. "After tough negotiations, we finally sold 500t of HRC IS2062 3.0mm*1,500mm*C at INR59,000/t (USD718/t) on Thursday, while could sell 700-800t a day easily in the middle of March," added the trader. He worries prices of HRC would decrease again in the forthcoming several days in view of the watchful atmosphere in the market.
With the regular monthly sales volume of 20,000t, the trader would sell 17,000t in April, down from 18,000t in March. He recorded the sales volume of around 54,000t in the first quarter of 2023, against 140,000t or so in 2022.
"Discouraged by the decreasing prices in major HRC supplying countries, we remain eager to close deals now, for fear of a price decline here," noted another local trader, quoting INR62,000/t (USD755/t) for HRC IS2062 3.0mm*1,500mm*C, similar to late last week. "Export prices from China witnessed the total markdown of around USD50/t in recent one month, and those from Russia stand as low as USD660/t this week. Besides, the demand from downstream industries remains far from strong," explained the trader. Meanwhile, he disclosed that though local government announced the launch of several large projects, it takes time for the demand to recover. The trader sold about 50t of HRC at INR62,000/t (USD755/t) on Thursday and did not close any deals on Wednesday. He worries a price decline in the coming several days seeing the low purchasing activities of downstream customers.
Holding about 2,800t of stocks, the trader would sell 1,500t in April, against 800t in March. He roughly sold 3,500t in the first quarter of 2023 and 23,000t in 2022.
