Local Indian HRC prices surge amid buying support and expected base price hike by mills
Prices in the local Indian hot rolled coil (HRC) market have increased by INR 1,500/mt during the past week to INR 42,500/mt ($667/mt) ex-works, amid strong buying sentiment and anticipation of a base price revision by steel mills over the next two weeks, traders said on Monday, January 1.
Market sources said that Indian steel mills are expected to hike HRC base prices by INR 1,000-2,000/mt ($16-32/mt), much higher than the market anticipated in mid-December, triggering a rush for fresh bookings and support for prices.
“The flurry of fresh bookings has been seen across market segments, dealers and end-users,” a Mumbai-based trader said.
“Steel companies are expected to cite the rise in input costs as a reason for revising HRC base prices. Even those dealers and end-users who were on the sidelines are back in the market to make bookings as they do not expect any resistance to higher prices and have discounted possibilities of any correction in the short term,” the trader added.
Sources pointed out that local Indian prices are expected to be sustained as they still has a comparative edge over imported HRC.
According to the sources, domestic HRC prices are cheaper than the landed price of imported HRC by about INR 1,000/mt and this price advantage of Indian HRC will support the local market.
$1 = INR 63.69