Local Indian hot rolled coil (HRC) prices have increased for the second consecutive week, with prices increasing by INR 1,500/mt ($22/mt) week on week to INR 44,000/mt ($647/mt) ex-works, in anticipation of a strong revision of base prices by local steel mills later in the month, traders said on Monday, January 2.
“Every dealer is pushing up prices, expecting that the base price revision by local steel mills will not be less than INR 6,000/mt ($88/mt), the highest in recent years,” a Mumbai-based trader said.
“However, the demand situation and the market’s ability to absorb such high prices are still very uncertain. Already during the past week, transaction volumes have declined - a clear indication that higher prices will face resistance,” the trader added.
Market sources said that, while local steel mills are expected to commence base price revisions from later this week, most end-users are already factoring in higher HRC prices by hiking their own finished product prices.
$1 = INR 68.20