Reversing recent downtrend, local Indian hot rolled coil (HRC) trade prices edged up amid trade level restocking on market speculation of integrated mills to go in for a mid-month base price hike, SteelOrbis learned from trade and industry circles on Monday, July 10.
Sources said that even though JSW Steel Limited iss the only mill to drop HRC base price for current month delivery and others have so far maintained it, there is a lot of market speculations that producers are considering a mid-July base price increase triggering trade channels to restocking early.
More specifically, HRC trade price moved up INR 200/mt ($2/mt) at INR 55,300/mt ($669/mt) ex-Mumbai and up INR 400/mt ($4/mt) at INR 54,100/mt ($655/mt) ex-Chennai in the south. “Trade is heard to be quoting higher price as new stocks from mills are expected to be at a higher price. Most mills will probably seize the slight market stability to hike prices which have been maintained early in the month. Mills are also heard to be improving overseas sales which may take care of the surplus material available in local market,” a Mumbai based distributor said.
“But upside potential from current level will be limited by overall slow manufacturing sector growth and end users will continue to remain cautious in restocking raw materials,” he added.
However at least two sources in private mill expressing optimism of demand growth said that producers were considering at least INR 1,000/mt ($12/mt) base price hike, but the “timing is yet to be decided.”
$1= INR 82.60