Indian HRC prices firm up as producers increase base price

Indian hot rolled coil (HRC) prices have firmed up since last week by INR 1,000-1,200/mt to INR 35,000-35,200 ($644-650/mt) ex-warehouse, with most producers increasing their prices for December by INR 1200/mt ($22/mt), riding on higher import offers despite weak domestic demand, traders said on Friday, December 7.
 
"Imported HRC offers have increased to $575-580/mt FOB ex-China and the landed price has risen following the depreciation of the Indian rupee. Domestic demand for HRC has continued to be weak, but the weakening of the rupee and the resultant increase in the landed price of imports were taken by producers as the best window to announce a hike in base prices," a Mumbai trader said.
 
"Most large mills without captive mines are facing shortages of iron ore. The raw material is either being imported or sourced from Indian domestic miner NMDC at a much higher price than a few months ago. Mills have had no option but to risk low demand to protect margins," said an official at an eastern India-located steel mill.
 
According to market sources, actual users are rejecting import offers in favor of sourcing from local mills and producers are expecting this trend to continue through December and to enable them to make another marginal $10-15/mt price increase early next year.