Indian domestic hot and cold rolled coil market demand remains muted as the general election results were announced on Tuesday, Indian traders tell Kallanish. 

Domestic demand has been weak in the last month due to elections. Sources do not expect demand to improve post-election due to monsoons, which occur between June and September, and due to extra product availability as mills return to full production in July following shutdowns.

There has been limited supply in recent months as most major Indian mills have been undergoing annual maintenance shutdowns in the April-June quarter in order to rebalance supply-demand dynamics. An estimated 300,000-1 million tonnes has been off the market during this period (see Kallanish passim).

India’s current prime minister Narendra Modi’s party, Bharatiya Janata Party (BJP), has remained in power, but not with a clear majority, according to preliminary election results. This is a major shift from exit polls which had predicted a clear majority win for BJP.

Market participants are in a wait-and-watch mode, awaiting more clarity from the new government.

Domestic HRC offer prices were heard at INR 54,000/tonne ($646.56/t) ex-Mumbai for IS2062/E250 BR grade. Offers were heard at INR 53,000/t ex-works for the west coast, and at around INR 52,000/t ex-works for the east coast. Indian traders expect domestic longs and flats prices to correct in the coming weeks. A source forecasts HRC prices may correct to INR 52,500-53,000/t.

CRC quotes were heard at around INR 61,000/t ex-Mumbai for IS513 Grade O.

In the Indian import market segment, China-origin offers for HRC were heard at $560-570/t cfr India, for commercial-quality base grades, June/July shipment.

Japan-origin HRC import offers were heard at over $600/t cfr India, a drop of around $30/t on-week. Last week, a Japan-origin deal was heard at over $600/t cfr India, for 60,000 tonnes of re-rolling grade, July/August delivery. This deal was however not confirmed by deadline.

Vietnamese offers were heard at $590-595/t cfr Indian ports. Last week, a Vietnam-origin deal was reported at $590-595/t cfr India, re-rolling grades, July/August shipment.

Indian export activity to Europe remained weak amid low demand, and Indian mills are still out of the export market (see separate story).