Local Indian hot rolled coil (HRC) prices have continued to record gains for the second consecutive week, increasing by INR 600/mt ($9/mt) during the past week to INR 36,500/mt ($573/mt) ex-works, since more domestic steel mills have revised their flat product base prices, traders said on Monday, August 7.
“More mills have announced higher base price for August deliveries. The hikes for flat products have ranged around INR 1,000/mt ($16/mt). Accordingly, dealers have also updated their prices during the past week,” a Mumbai-based trader said.
“With local steel mills hiking base prices twice during the last two months, dealers have not absorbed the higher base price and instead have passed on the increase to end-users,” the trader added.
However, at least two other traders state that, while local steel mills are increasing their base prices on the back of higher export shipments and the firming up of international finished steel prices, they are still not sure whether the local market will be able to absorb the hike with the Indian manufacturing PMI data falling to a eight-year low in July.
$1 = INR 63.73