Local Indian hot rolled coil (HRC) prices have gained INR 500/mt ($7.50/mt) during the past week to INR 35,000/mt ($527/mt) ex-works, responding to the flat product price hikes made by steel mills, but market activity has continued to slowdown, traders said on Monday, April 11.
"Dealers have been quick to pass on price hikes of local steel mills to their customers. But most report a further fall in transaction volumes as end-users have continued to reduce their bookings at the higher price levels," a Mumbai-based trader said.
"Steel mills have been riding on the back of import protection and zero inward shipments to hike their base price levels. But the market is reacting with reduced activity, with traders already saddled with high stocks," the trader added.
Market sources said that most large steel mills such as Steel Authority of
India Limited (SAIL) and JSW Steel Limited have increased their flat steel prices by INR 500-1,000/mt ($7.50-15/mt) for April deliveries.
While the hike in prices were expected by the market, dealers are facing a slowdown in stock movements and have not been able to resort to discounting either given that most transactions are for very low volumes, the sources added.
$1 = INR 66.46