Reversing their previous soft trend, local Indian hot rolled coil (HRC) prices have moved up by INR 400/mt during the past week to INR 35,900/mt ($560/mt) ex-works on the back of higher international prices and dealers passing on base price revisions by Indian steel mills, traders said, July 31.
“Dealers had postponed passing on base price hikes announced by domestic steel mills early in the month, but now the dealers are adjusting prices to pass on the higher base prices to end-users,” a Mumbai-based trader said.
“Strong international finished steel prices have also enabled local dealers to stop adsorbing higher base prices and to push up their own prices and improve their margins,” the trader added.
At least two other traders said that domestic steel mills are expected to take advantage of the firming up of international steel prices to announce another upward revision of base prices in August, which would be the second increase in two months.
According to these two traders, Indian steel mills are expected to increase their HRC base prices by about INR 500/mt.
$1 = INR 64.15