Prices in the local Indian cold rolled coil (CRC) market have increased for the second consecutive week, rising by INR 1,000/mt ($15/mt) week on week to INR 50,500/mt ($740/mt) ex-works, with domestic steel mills commencing upward revisions of base prices, traders said on Tuesday, January 10.
Prices in the local Indian CRC market have increased by INR 2,500/mt ($37/mt) over the last two weeks, since local mills have made sharp price hikes in the current month in order to offset rising input costs, market sources said.
“A few Indian mills have started to hike their flat steel prices, triggering hectic restocking activity among dealers,” a Mumbai-based trader said. “Some mills have hiked CRC base prices by INR 3,000/mt ($44/mt) and more mills are expected to announce revised prices through the current week,” the trader added.
“However, the rush to restock is prompted by market expectations that the current round of price increases is just the beginning and that steel mills may increase their prices further by around $44/mt towards the end of this month. Mills are just starting to gauge the impact on the market before deciding on their second price hike” according to trader.
At least two traders, however, expressed concern over the ability of the market to absorb such stiff price increases against the fact that official industrial production and gross domestic production forecasts by the government are trending downwards.
$1 = INR 68.18