The end of the rainy season in India has not led to a rebound in demand for the hot coil market. Due to the impact of imported resources from China, hot coil prices are under pressure and remain low.

This week, the ex factory price of 3mm and above commodity rolls is 3450-35500 rupees/ton (562-578 US dollars/ton), which is the same as last week, equivalent to an import resource quotation of 523-538 US dollars/ton (CFR, Mumbai), excluding the 7.5% import tariff. However, the import price for SS400 hot coils of 3mm and above in China is only $515-520 per ton (CFR, Mumbai), a decrease of $15 per ton from early September.

Based on past experience, it is not common for the Indian hot coil market to remain weak after the end of the rainy season. There are three main reasons. Firstly, the Indian government's infrastructure projects have not yet begun implementation, resulting in sluggish market transactions; Secondly, due to the pressure of Chinese resources, the market situation continues to deteriorate. Although some Indian traders have decided to lower their prices by 500-750 rupees per ton, it has not stimulated a rebound in market demand; The third reason is the tight liquidity in the capital market, the tight funds in the steel market, and buyers are cautious in purchasing.

For the future market, it is expected that domestic demand will not improve before January, and the market situation will not improve until the end of the 2014 fiscal year.