Local Indian hot rolled coil (HRC) prices have continued their upward momentum during the past week, gaining INR 1,000/mt week on week to INR 38,500/mt ($603/mt) ex-works, as the market has been getting ready for another base price revision by domestic steel mills, traders said on Monday, August 28.
“Large mills are expected to announce another hike in their base prices within the next few days on the back of strong exports,” a Mumbai-based trader said.
“Local HRC prices have moved up by INR 2,000/mt over the past two weeks. But transaction volumes have been falling as there is little appetite among end-users to stock up at these higher prices,” the trader added.
Market sources said that Indian steel mills are considering a second price hike of around INR 1,500/mt, the second increase within the last 30 days, even at the cost of a significant slowdown in stock movements at the dealers’ end.
$1 = INR 63.87