Indian domestic hot rolled coil (HRC) prices have remained stable in the past week in the range of INR 36,250-36,500/mt ($672-677/mt) ex-works on the back of the continued rise in import offer prices and steady restocking activity in anticipation of another price hike by local mills, traders said on Monday, January 28.
"HRC prices have been showing signs of consolidating at higher levels. There has not been a drastic change in demand but, with imports getting costlier, local prices have been receiving strong support," a Mumbai-based trader said.
"Ex-China HRC offers were up $5-10/mt and were quoted last week in the Indian markets at levels of $615-625/mt on FOB basis. There were no buyers at these levels," the trader said.
"The increase in import offers presumably on rising costs of raw materials in international markets is seen as a precursor for Indian mills also going in for another price hike early next month," the trader added.
According to market sources, with Indian steel demand forecast to grow by between seven percent and nine percent through 2013, local steel mills, particularly those without captive mines, are well placed to push through price increases to protect margins from rising input costs.
The market expects monthly price increases of around $10/mt over the next few months, since higher prices are being absorbed without any negative inventory pile-ups at the stockyards of the mills.