Prices in the local Indian hot rolled coil (HRC) market have continued their upward movement for the third consecutive week, increasing by INR 100/mt ($1.5/mt) week on week to INR 38,700/mt ($579/mt) ex-works, in anticipation of a base price hike over the next week while transaction volumes are low owing to the festival holidays, traders said on Monday, October 17.
“The outlook for HRC continues to be strong. Although market activity and fresh bookings have slowed down owing to the Hindu festival holidays,” a Mumbai-based trader said.
“The market expects HRC prices to continue to consolidate at higher levels as trading activity picks up in course of this week, after the holidays. The next target for prices is surely INR 39,000/mt ($584/mt ) and this is expected as soon local steel mills consider another base price revision later this month,” the trader added.
Market sources said that local steel mills are likely to increase HRC base prices before the festival of lights and another round of holidays at the end of October.
The sources said that the market expects the price hike for all flat products to be in the range of INR 500-1,000/mt ($7-15/mt).
$1 = INR 66.82