Local Indian hot rolled coil (HRC) prices have increased by INR 500/mt during the past week to INR 41,000/mt ($630/mt) ex-works in anticipation of domestic steel mills hiking their base prices starting later this week, traders said on Monday, April 3.
"Most of the local steel mills, at least the large ones, are expected to announce a price revision for April deliveries later this week. Others are expected to follow suit subsequently. Dealer prices are moving up in reaction although buyers have been reducing booking volumes," a Mumbai-based trader said.
Markets sources said that indications are that local steel mills will go in for a strong upward price revision of around INR 1,000/mt ($15/mt) for all flat products.
The sources said that the Indian government is expected to approve mandatory usage of domestic steel products for projects within the next two weeks and this will embolden steel mills to go in for an aggressive price revision.
$1 = INR 65.05