Indian domestic hot rolled coil (HRC) prices have consolidated at levels of around INR 35,750/mt ($651/mt) ex-warehouse, recording gains of $8-10/mt over the previous week, as Chinese import offers to the country have increased and also due to restocking in the local markets, traders said on Friday, December 28.
"Chinese traders have continued to push their HRC offers up to $610-620/mt CFR Mumbai, with an increase of about $10/mt over the previous week. However, these offers have failed to gain acceptance among Indian buyers so far," a Mumbai-based trader said.
"The rejection of ex-China offers and negligible import transactions concluded have provided strong support for domestic prices. Indian producers are also negotiating hard to get bookings at higher prices without any discounts," the trader added.
According to an official at an eastern Indian steel mill, large integrated steel producers like Steel Authority of India Limited (SAIL) has already indicated that prices early next year may be adjusted to offset rising input costs of iron ore and coking coal.
The current stability of domestic HRC prices at higher levels and the sustained firmness of import offer prices may prompt an upward revision by around $18/mt by early February, the official added.