Local Indian hot rolled coil (HRC) prices have remained at INR 41,000/mt ($677/mt) ex-works during the past week, as the much-expected steel price hikes by mills have not materialized and as import offers have failed to match expectations, traders said on Tuesday, August 26.
"Domestic steel mills are still undecided on their proposed price increase, with their price adjustment postponed since last month. It is possible mills are having second thoughts over increasing prices and hence dealer prices are not reacting," a Mumbai-based trader said.
"Market expectations are that mills will maintain current prices since transaction volumes of HRC have remained depressed, reflecting the ongoing weakness of demand. Also, mills operating blast furnaces are benefiting from the softening of imported coking coal prices, which have fallen by 16 percent during the April-June period, enabling them to delay adjusting their base prices," he added.
Market sources said that HRC prices are not under any pressures from import competition either, as traders are not concluding transactions as import offers have not matched expectations.
Import offers for ex-China HRC are quoted in the range of $540-545/mt CFR Mumbai, down by $5/mt from early in the month, but importers have not made any significant bookings for September shipments, seeking an additional decrease of $10/mt in prices, the sources said.
$1 = INR 60,53