Prices in the local Indian hot rolled coil (HRC) market have remained stable for the second consecutive week at INR 36,500/mt ($548/mt) ex-works, even as the market has been awaiting another round of price hikes by domestic steel mills for October deliveries, traders said on Monday, September 26.
“There is lot of talk in the market of local steel mills taking advantage of the tightening of supplies to push ahead with another price hike in flat products, the third in two months,” a Mumbai-based trader said.
“But dealers have sufficient stocks and are in no hurry to make fresh bookings ahead of the expected price rise,” the trader added.
Market sources said several of the large mills are reported to have booked significant HRC export orders over the past two weeks in the range of $420-440/mt FOB and the resultant draw-down in mill level inventories would support another hike in base prices.
At least two traders said that they have heard reports from steel mills that the latter are considering an across-the-board hike in flat product prices of around INR 500/mt ($7/mt) sometime within the next fortnight.
$ 1 = INR 66.63