Prices in the local Indian hot rolled coil (HRC) market have remained stable during the past week at INR 36,500/mt ($545/mt) ex-works, as the market was seen to be taking a breath after surges earlier in the month, traders said on Monday, September 19.
"It is possible that dealers are carrying high inventories after a flurry of re-stocking early in the month. Fresh bookings are taking a pause with dealers liquidating current stocks," a Mumbai based trader said.
"But with outlook remaining strong, even the modest slowdown in market activity does not have impact on prices. More so since the market is rife with talks of local steel mills hiking flat product prices this month end," he added.
Market sources said that at least two local steel mills are expected to announce a second price hike of the month later this week.
The sources said that the price hike for HRC would range around INR 500/mt ($7/mt). Earlier in the month, local steel mills price hike averaged around INR 1,000/mt ($14/mt) across flat products.