Local Indian hot rolled coil (HRC) prices have increased by INR 1,500/mt during the past week to INR 40,000/mt($627/mt) ex-work, since Indian steel mills have revised their base prices for current month deliveries, traders said on Monday, September 11.
Market sources said that two large mills have increased their HRC prices by INR 1,500/mt due to the rise in input costs and strengthening of international prices. He also stated that the base price revision would maintain ‘import parity pricing in the domestic market’.
The sources said that other steel producers are also expected to announce higher base prices later this week, resulting in sharp spike in prices at dealers’ end too.
However at least two other traders said that some of the Indian mills may announce higher prices hikes and increase their prices by INR 2,000/mt and in that case the market is expected to see another bout of surge.
“Rather than fundamental of the domestic market, it has been the rising export business of large producers that is triggering rise in HRC prices” a Mumbai based trader said.
“Reports indicate that ex-Indian HRC offers are expected to rise by another $10/mt and cross the $600/mt FOB mark and with the support from high volume export shipments, Indian mills have increased their domestic base prices despite the ongoing weak demand in domestic market and rising inventories with market intermediaries the trader added.
$1 = INR 63.93