In India, hot rolled coil (HRC) prices have generally been stable at about ₹52,200 to ₹54,500 per tonne through last week. HRC of IS2062 E250 manufactured in Mumbai has seen a slight increase of approximately ₹100/t since last week (now ₹53,700/t). Though the Manufacturing Purchasing Manager's Index (PMI) was a solid 57.5 during the reporting period, indicating continued strength in manufacturing; however, little existing spot demand for HRC exists in either North or West, or South India, therefore providing empty shelves and caution to potential buyers who would purchase volume only when needed rather than hold inventory. Consequently, ongoing excess inventories along with aggressive discounting from seller,s along with significant amounts of bulk imported volume (over 205,000 t already received, additional shipments on the way) have prevented any meaningful upward price movement.

On the other hand, CRC (IS513, Gr O, 0.9 mm/CTL) prices held at the same levels w-o-w at around ₹59,500/t ($655/t) on Tuesday.

Outlook:

HRC prices could have a small downward adjustment in the near term due to weak demand and seasonal downtimes before Holi; however, expected price increases from mills in early March may provide a level of support, which will lead prices to remain in a range similar to current levels. CRC prices are expected to be relatively stable on general terms; however, tight supplies in thinner gauges will continue to support CRC prices. Upside potential is likely limited because of cautious buying and mixed price acceptance.