Indian integrated steel mills have increased hot rolled coil (HRC) prices slightly during the past week, riding on the revival of activity in key overseas markets, with the full resumption of business activity from China and rising local prices, but deals have been limited by low allocation from major Indian producers, SteelOrbis learned on Monday, October 12.
Traders and officials at producing mills said that ex-India HRC prices have increased by $5/mt on average from last week to $515-520/mt FOB, but exporters were constrained to limit higher volume trades owing to rising local demand, the tightening of supplies, and sales commitments in the domestic market.
“With domestic steel prices crossing the $600/mt mark in Indian rupee terms and the price differential between local prices and export realizations widening sharply, most integrated steel mills have sharply reduced export allocations for December-January,” an official at JSW Steel Limited said.
“The Indian currency too is performing strongly, appreciating above the INR 73 to the dollar mark at INR 72.98 to the dollar over the past week and this has further strained export realizations,” he added.
Market sources said that an eastern India-based steel mill concluded a comparatively lower volume trade contract for around 12,000 mt at around $520/mt FOB. Another integrated steel mill located in Odisha reported a trade for 20,000 mt with Singapore-based trading firm at the price range of $510-520/mt FOB for December shipment.
