Prices in the local Indian hot rolled coil (HRC) market have continued to increase for the second consecutive week, rising by 1,000/mt ($15/mt) to INR 38,600/mt ($581/mt) ex-works, due to the further tightening of supplies and indications of mills commencing hikes in base price for the current month, traders said on Monday, October 10.
“More and more dealers are reporting that they are not securing bookings for required volumes as most mills are facing continued fall in inventories and this has led to continued spurt in prices at dealer points,” a Mumbai based trader said.
“Market reports indicate that local steel mills will make another round of upward revision of base price by at least $15/mt early next week, after the current festivals. In fact there are reports that smaller producers are already seeking a higher base price for current month deliveries,” the trader added.
At least two traders have stated that once local steel mills complete their pricing announcements for the current month, local HRC prices will held the potential of touching INR 40,000/mt ($601/mt) mark, pointing out that HRC prices gained INR 2,100/mt ($32/mt) over the last one month.
Market sources said that several large steel mills have continued to book large volume export orders to Europe over the past week and exporters have hiked offers by around $25/mt to range of $495-505/mt FOB, resulting in further squeeze in supplies to domestic market and triggering upward price push in the local market.
$1 = INR 66.6