Indian domestic hot rolled coil (
HRC) prices have consolidated in the range of INR 36,500-37,500/mt ($469-483/mt) ex-works with most transactions concluded at the higher end of the range amid reports of a steel price revival in Southeast Asian markets and price hikes by a few producers, traders said on Tuesday, July 16.
Market sources said that
India's largest steel producer Steel Authority of
India Limited (
SAIL) has increased its
HRC prices by INR 750/mt ($9/mt). With other producers still keeping their base prices unchanged, distributors have reacted by withdrawing discounts and concluding transactions at the higher end of the market price range, the sources added.
"Even without any uptick in demand, local
HRC prices have held firm with steel prices in China and South Asia indicating upward trends. The higher cost of imports amid a weak Indian rupee has also provided support for local
HRC prices," said a Mumbai-based trader.
"However, volumes of transactions concluded by traders have remained on the low side since most traders are carrying large stocks," the trader added.
Sources said that, according to local market reports,
HRC prices had firmed up by $10/mt to $525/mt FOB ex-China, prompting Indian importers to pull out since the weak exchange rate of the rupee against the dollar was making import shipments costly.
Besides, even the modest demand for
HRC from local users was for relatively small quantities which it was not viable to meet through imports given additional logistical and transportation costs, the sources said.
Market sources said that, with
SAIL taking the lead in pushing through a price hike to offset the rising cost of imported coking coal given the weakening of the rupee, other producers are expected to follow suit later this month and base
HRC prices could see an upward movement of INR 750-1,000/mt ($9-12/mt).