India steel: HRC prices flat on weak buying: Correction

Corrects Argus HRC price in fourth paragraph

Indian domestic hot-rolled coil (HRC) prices were flat this week amid bearish sentiment in weak trading.

Traders and distributors continued to buy only small quantities to meet immediate needs, avoiding building stocks, said a Mumbai-based steel trader.

HRC offers by three major integrated mills based in Delhi and Mumbai were heard at 41,500 rupees/t ($592/t), with the best bids at around Rs40,500/t.

The Argus-assessed price for HRC ex-Mumbai was unchanged from last week at Rs40,750/t.

Downstream industries are delaying purchase decisions until the results of India's national election are declared on 23 May.

A win by the incumbent BJP-led administration may support steel prices as it could signal the continuation of infrastructure investment policies, said the manager of a state-controlled steel company.

But market participants fear demand could be affected if the new government cuts funds for the infrastructure sector and instead diverts money to projects such as loan waivers for farmers and income guarantees for the poor.